KUALA LUMPUR: Guocoland (M) Bhd will continue to focus on monetising its inventories and progressing its development projects for timely completion.
In a filing with Bursa Malaysia yesterday, the property developer said new product launches will be phased according to prevailing market conditions.
“The group remains alert to seek out opportunities to increase its landbank.”
For its second quarter ended Dec 31, 2022, Guocoland’s net profit rose to RM8.53mil from RM3.76mil a year earlier, while revenue dropped to RM76.88mil from RM105.56mil previously.
Basic earnings per share stood at 1.27 sen versus 0.56 sen previously.
Guocoland said the lower group revenue was primarily due to reduced revenue from the property development division, which was partially offset by better performance in the hospitality and property investment divisions.
“Notwithstanding the decline in revenue, the profit before tax improved by RM4.1mil as a result of higher share of associates and joint ventures profits and better gross profit margin, following the finalisation of the development cost of Garden Terrace and South Tower of Emerald Hills in Cheras.”
For the six-months period ended Dec 31, 2022, Guocoland reported a net profit of RM10.10mil, versus a net loss of RM4.22mil in the previous corresponding period, while revenue improved to RM183.70mil from RM140.68mil previously.
Going forward, Guocoland said the domestic property sector remains challenging in an environment of higher interest rates, persistent inflation reducing the purchasing power and an overhang of excess property inventory in several market centres and property classes.
