3QFY20 core net profit declined by 42.5% yoy and 64.4% qoq

OIB’s core net profit in 3QFY20 declined by 42.5% yoy mainly due to timing mismatch translating property launches into sales, and declined by 64.4% qoq mainly due to lower property sales and payment of discretionary bonus. General Construction contributed more qoq while Oil Palm Cultivation contributed more qoq and yoy. Overall, 3QFY20 revenue declined 22.1% yoy and 31.0% qoq.

9MFY20 PBT and core net profit increased 11.3% and 65.5% yoy

9MFY20 revenue declined 14.9% yoy but PBT increased by 11.3% mainly due to higher margins generated by certain housing projects. 9MFY20 net profit declined by 38.5% yoy mainly due to substantial deferred tax assets recognized and lower real property gain tax in 9MFY19. Excluding these exceptional items, 9MFY20 core net profit rose by 65.5% yoy. As before, no interim dividend has been declared

April-June quarter almost fully impacted by MCO even though OIB responded well

The imposition of the Movement Control Order (MCO) by the government from 18 March to 9 June to control the spread of the Covid-19 pandemic had affected overall economic activities and growth. As digitalization has been integrated into group infrastructure, OIB has managed to cushioned the negative impact through seamless communication and business processes, remote working and virtual marketing. The group, on top of its strong capital management, has also implemented cost saving and rationalization measures to ride out the challenging times ahead.

Source: Mercury Research - 10 Jun 2020