Local property developers record strong QoQ earnings in FY17

This is despite the current soft real estate market sentiment in the country

by IZZAT RATNA

LEADING property developers posted strong quarter-on-quarter earnings and revenue for the nancial period ended June 30, 2017, despite the current soft real estate market sentiment.

Tropicana Corp Bhd posted a 58% jump in net profit to RM52.84 million for the second-quarter (2Q) ended June 30, 2017, against RM33.31 million in the corresponding period last year, driven by strong performance and advanced progress made in construction works on ongoing projects.

Its revenue surged 24.1% year-on-year (YoY) to RM444 million for the period, underpinned by higher revenue derived from key projects across the Klang Valley and the northern region.

Tropicana’s earnings per share increased from 2.3 sen in the 2Q last year to 3.63 sen in the same quarter in 2017, while net asset per share rose to RM2.21 from RM2.19 previously.

For the financial year 2017 (FY17), the company achieved total new sales of RM508.6 million. Total unbilled sales stood at RM2.1 billion for the first six months of this year.

Meanwhile, Eastern and Oriental Bhd (E&O) posted a 556% YoY jump in net profit for its 1Q ended June 30 to RM21.24 million, on the back of higher revenue contribution from its ongoing projects such as the Tamarind, Amaris Terraces and Ariza Seafront Terraces in Seri Tanjung Pinang, as well as increase in the sale of completed properties.

Its revenue rose 6.2% to RM173.44 million for the period under review, versus RM163 million previously.

E&O’s property segment generated RM148.89 million in revenue and an operating profit of RM48.81 million as at end-June, compared to RM137.09 million and RM37 million respectively in the same period a year ago.

The remaining contribution came from its hospitality and investment segments.

In early August, E&O shareholders sanctioned the RM766 million sale of a portion of the Seri Tanjung Pinang Phase 2A (STP2A) to Retirement Fund Inc — paving the way for the firm to unlock value of its investment in STP2A, as well as to further reinvest into the development of STP2A.

Titijaya Land Bhd’s net profit increased 12% to RM76.74 million for its financial year ended June 30, against RM68.34 million posted in FY16.

The increase was attributed to completed projects during the financial year — namely 3Elements, Seri Alam Phase I & II, Zone Innovation Park and progressive recognition from the H2O project.

Revenue fell marginally to RM380.75 million in FY17 against RM400 million in the preceding year, due to the Zone Innovation Park project’s completion in the previous quarter.

For its 4Q ended June 30, 3017, Titijaya posted a 14% YoY increase in net profit to RM17 million in tandem with a 14.47% YoY jump in revenue to RM122 million.

Titijaya expects strong performance for FY18 on the back of continuous sales and existing project progress recognition.

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