PETALING JAYA: OCR Group Bhd expects to post stronger financial performance for the financial year ending Dec 31,2021 (FY21), supported by higher sales and construction activities amid improving economic sentiment on gradual vaccination rollout, after a subdued FY20 performance.
The boutique integrated property developer noted its ongoing property development projects have experienced stronger buying interest in recent months, with Isola KLCC in Kuala Lumpur amassing take-up rate of 84%, while PRIYA Kuantan in Pahang was almost sold out.
OCR said its unbilled sales and orderbook, which currently stood at RM393mil, was expected to provide solid earnings visibility until FY23.
For the fourth quarter (Q4) ended Dec 31,2020, OCR’s net profit slid 6.12% to RM2.27mil from RM2.42mil in the corresponding quarter of the preceding year.
However, its Q4’20 earnings represented an improvement from a net loss of RM900,000 in Q3’20, thanks to higher recognitions from all its projects as construction activities were ramped up in the quarter in review.
During the quarter in review, its revenue grew 28.1% to RM27.25mil from RM21.27mil in Q4’19. The improved top-line came on the back of higher construction activities from both its development and construction divisions.
OCR managing director Billy Ong Kah Hoe (pic) said since resumptions of operations in June, the group had ramped up the construction activities of its property developments and increased efficiency to ensure its projects were able to meet the stipulated deadline.
“We have substantially improved our position in Q4’20 through the tireless efforts of our entire team and are optimistic to handover PRIYA Kuantan in 2021 and Isola KLCC in 2022, ”Ong said.
“Moving forward, we are optimistic of achieving higher sales and stronger revenue contribution from our construction division, as market sentiment improved in line with the vaccines being gradually rolled out to the masses. We are hopeful that this will help spur the property market as we slowly return to normalcy.
“Furthermore, we are actively exploring mergers and acquisitions opportunities to grow the group’s earnings. We intend to leverage on our healthy net gearing position of 0.35 times to acquire potential value-accretive projects, thus allowing us to reach a higher plane of growth.”
For FY20, OCR’s net profit stood at RM805,000, compared with RM8.88mil in FY19, while its revenue fell to RM73mil from RM81.87mil.