KUALA LUMPUR (June 22): JKG Land Bhd posted a 24.2% increase in net profit for its first quarter ended April 30, 2023 (1QFY2024) to RM2.25 million from RM1.81 million a year ago, driven by improved revenue from its property development segment.

Earnings per share rose to 0.1 sen in the latest quarter from 0.08 sen previously, according to its bourse filing on Thursday (June 22).

JKG’s 1QFY2024 revenue increased by 2.6% to RM20.59 million from RM20.07 million a year ago, as its property development segment recorded 3.1% higher revenue of RM19.26 million compared with RM18.68 million in 1QFY2023.

“The increased revenue was contributed by the progress of construction works from Phase 2 of The ERA albeit lower progress of construction works from the near completion residential projects namely Phase 3 and Phase 4 of Taman Puteri in Kulim, Kedah for the current quarter,” the group said.

Its property development segment also recorded a better operating profit in 1QFY2024 by 27% to RM4.02 million from RM3.17 million a year earlier, which JKG said was due to recognition of project cost savings for the completed units of The ERA sold during the quarter.

In terms of prospects, JKG said the increase in the overnight policy rate of another 25-basis points on May 3 is expected to be cushioned by the relatively healthy demand, improving household financial stability and the gradually rising shift to properties in choice of assets to hedge against inflation.

“Barring unforeseen circumstances, all of the group’s projects which are progressing well are expected to contribute positively to the earnings and deliver a satisfactory financial performance for the financial year (ending Jan 31,) 2024,” it said.

On Thursday, the share price of JKG closed unchanged at 9.5 sen, valuing the group at RM216.12 million.