KUALA LUMPUR: Guocoland (M) Bhd’s key focus remains the timely completion of its on-going development projects and monetisation of its inventories.
“New product launches will be phased in line with the prevailing market conditions. Furthermore, the group remains vigilant in seeking opportunities to expand its landbanks,” it said in a filing with Bursa Malaysia.
The property group acknowledged ongoing challenges in the local property sector due to high interest rates and increasing construction costs, which are dampening profit margins.
“Property sales remain challenging due to oversupply of properties in different markets and segments,” it added.
In the third quarter ended March 31, Guocoland’s net profit tumbled 66.3% to RM2.9mil compared with RM8.7mil achieved in the same quarter last year.
Revenue for the quarter fell 20.8% to RM88.9mil from RM112.4mil while earnings per share stood at 0.44 sen versus 1.30 sen a year ago.
For the first nine months, it posted a lower net profit of RM13mil on a 10.7% higher revenue of RM327.7mil.
Guocoland said the revenue was primarily contributed by the better performance from the property development arising from the completion of the first phase of Emerald 9 in Cheras and better sales from its Oval project.
In addition, the performance of the hospitality division also saw improvement with higher occupancy and better average room rates in line with the encouraging rebound in social and travel activities.
