KUALA LUMPUR, May 27 — IOI Properties Group Bhd’s net profit soared to RM178.75 million for the third quarter ended in March 31, 2021 (Q3 FY2021) from RM82.36 million a year ago.
Revenue increased by 44 per cent to RM578.95 million from RM401.43 million in same quarter last year, mainly attributable to better performance from the property development segment.
“The property development segment recorded revenue and operating profit of RM485.2 million and RM182.3 million respectively due to higher sales contribution from both Malaysia and China operations as well as advance progress work from ongoing residential development in China,” it said in a filing with Bursa Malaysia today.
However, revenue and operating profit of RM72.4 million and RM32.9 million for property investment in the current year quarter were RM8.5 million or 11 per cent and RM7.2 million or 18 per cent lower than the preceding year corresponding quarter.
“This is mainly due to rental relief assistance extended to tenants as a result of the reinstatement of movement control order (MCO) by the government since Jan 13, 2021,” it said.
Revenue for hospitality and leisure decreased by 46 per cent from RM35.4 million to RM19.1 million due to loss of revenue arising from reinstatement of MCO.
On prospects, IOI expected the operating environment to remain challenging and uncertain.
“Nonetheless, the group will continue with its prudent and professional management approach to ensure the delivery of satisfactory performance in the coming quarters while improving its market position and strengthening its competitive edge to seize any opportunities which may emerge,” it said.
It said dynamic sales and marketing campaign received favourable response and contributed strongly to the Q3 FY2021 sales performance for the property development segment in Malaysia, with profit to be registered in the coming quarters.
“The group will continue aggressive campaign and leverage the Home Ownership Campaign under the National Economy Recovery Plan to drive sales of our mid-priced range products in tandem with market demands as these products remain well sought-after in our existing townships,” it said.
In mainland China, it added, residential developments in IOI Palm City, Xiamen would continue to contribute to the group’s financial performance in coming quarters, while IOI Palm City Mall, Xiamen has secured high level of occupancy and the mall business is expected to commence by the third quarter of 2021. — Bernama
