KUALA LUMPUR: IOI Properties Group Bhd’s (IOIPG) net profit for the first quarter ended Sept 30, 2022 (Q1) surged to RM640.29 million from RM208.81 million in the same quarter a year ago.
Revenue increased 60 per cent to RM691.52 million from RM431.77 million previously.
In a filing to Bursa Malaysia, the group said the strong start in the current financial year was attributed to better performances across all its business segments particularly the hospitality and leisure segment which saw a sterling recovery of more than 400 per cent in revenue.
"IOIPG has continued to deliver resilient results despite the challenges. I am confident that we are on the right track to achieving our targets in the financial year ending June 30, 2023 (FY2023) as our business segments are well positioned for sustained growth,” said chief executive officer Datuk Voon Tin Yow.
In the property development segment, the group achieved a revenue of RM529.9 million, up 46 per cent from the preceding year corresponding quarter, attributable to higher sales contributions from Malaysia operations, despite the property industry being impacted by inflationary pressures and global supply chain disruptions.
As for the property investment segment, IOIPG said revenue rose to RM110.1 million which is an improvement of 86 per cent compared to the preceding year corresponding quarter.
This substantial increase was mainly due to the low-base effect recorded in Q1 FY2022 and partially contributed by the commencement of recurring leasing income from IOI City Mall Phase 2 following its business commencement on Aug 25, 2022, it noted.
On the other hand, the group said revenue contributions from the hospitality and leisure segment increased from RM7.6 million to RM48.7 million compared to the preceding year corresponding quarter.
The better performance was the result of resilient domestic tourism that has driven the hospitality industry to gradually regain its momentum.
The refurbishment of its hotels, namely Putrajaya Marriott Hotel and Palm Garden Hotel, Putrajaya, a Tribute Portfolio Hotel, will ensure that it is well poised to meet any increase in domestic and international travellers, it shared.
The group said it looked forward to its pipeline of projects, mainly comprising affordable landed and high-rise developments worth RM1 billion, to be launched in Malaysia.
Voon commented that the rise in interest rates and cost of living has increased the demand for affordably priced homes within the housing market.
"Hence, our product range will remain flexible to meet the rising demand in this space. To assist prospective homebuyers, the group has sales packages with attractive financing aid through IOI Finance on selected IOIPG projects,” he said.
Moving forward, IOIPG said it remained cognisant of global challenges as it looks ahead to navigate through substantial headwinds across its developments in Malaysia, Singapore, and China.
"The group is confident that recurring earnings from its various property investment portfolios as well as its pipeline of new projects and launches, which comprise offerings ranging from double-storey homes and town houses to cluster semi-detached homes and bungalows, will continue to lay a strong foundation to ensure the sustainability of the Group’s earnings across all business segments for the long term,” it added. - Bernama