IOI Properties' 4Q net profit surges, boosted by jump in property investment earnings

KUALA LUMPUR (Aug 22): IOI Properties Group Bhd's net profit surged 147% to RM292.48 million in the fourth quarter ended June 30, 2022 (4QFY22), from RM118.37 million a year earlier. Earnings per share increased to 5.31 sen from 2.15 sen.

Explaining the higher profit, the group said it recognised RM60.2 million property development costs written down, attributable to the development projects in IOI Palm International Parkhouse in Xiang'An, China, and fair value gain on investment properties of RM147.3 million, mainly attributable to the retail malls in Malaysia.

Quarterly revenue rose 8.7% to RM715.94 million from RM658.65 million, contributed by property investment as well as hospitality and leisure segment, the group said in a Bursa Malaysia filing.

IOI Properties said the property investment segment's revenue jumped 89% to RM108.8 million from RM57.5 million, while operating profit soared 109% to RM38.2 million from RM18.3 million. This was due to the commencement of recurring leasing income from IOI Mall, Xiamen as well as the improvement in mall traffic in Malaysia.

The hospitality and leisure segment's revenue surged 124% to RM42.4 million from RM18.9 million, and operating loss narrowed by 53% to RM5.3 million from RM11.3 milliom, mainly due to robust domestic demand pursuant to the relaxation of travel restrictions and reopening of international borders, coupled with the festive season.

For FY22 as a whole, IOI Properties' net profit inched up 4.02% to RM686.74 million, from RM660.21 million in FY21, as revenue rose 4.09% to RM2.59 billion from RM2.49 billion.

The group recorded sales of RM1.9 billion in FY22, with the Klang Valley accounting for 48% of it.

Going into FY23, IOI Properties said the operating environment both within and outside Malaysia will continue to face substantial headwinds.

"Our ongoing projects and new planned launches in the pipeline will provide us with a strong foundation to assure the earnings sustainability of the group," it said.

IOI Properties' share price closed down 1.52% or 1.5 sen to 97.5 sen on Monday (Aug 22), giving the group a market capitalisation of RM5.37 billion.