GuocoLand saw 29.4% higher 3Q earnings even though revenue fell 7.4%

KUALA LUMPUR (May 17): Property developer GuocoLand (Malaysia) Bhd’s net profit rose 29.42% to RM8.71 million in its third quarter ended March 31, 2023 (3QFY2023) from RM6.73 million a year earlier (3QFY2022).

This was due to higher profits from associates and joint ventures, and better gross profit margins from finalisation of development cost in several projects.

Its earnings per share increased to 1.3 sen from 1 sen, said the group in its filing on Wednesday (May 17).

Quarterly revenue, however, fell 7.37% to RM112.36 million versus RM121.3 million after lower contributions from its property development division.

GuocoLand said that the property development division saw a lower percentage of completion for the first phase of Emerald 9 in Cheras.

It also saw fewer ongoing projects as its Emerald 9’s Garden Terrace and South Tower phases delivered vacant possession in the first quarter of the financial year ending June 30, 2023 (1QFY2023).

Nevertheless, its net profit increased 649.4% to RM18.81 million in its nine-month period of FY2023 (9MFY2023) from RM2.51 million on the back of higher revenue of RM296.07 million from RM261.99 million a year earlier (9MFY2022).

This was due to better sales and completion of its Damansara City project and finalisation of development costs of its Garden Terrace and South Tower phases of Emerald Hills.

Despite the improving economy in 2023, GuocoLand said that the domestic property sector remained challenging with higher interest rates, lower purchasing power and an overhang of excess property inventory.

“The group will continue to focus on monetising its inventories and progressing its development projects for timely completion,” it said, “New product launches will be phased according to prevailing market conditions.

“The Group remains alert to seek out opportunities to increase its landbank.”

Its share price closed higher by one sen or 1.54% at 66 sen. Its market capitalisation was RM462.3 million.