Diversified product offerings to sustain IOIProp earnings

PETALING JAYA: IOI Properties Group Bhd (IOIProp) expects its diversified product offerings spanning across three countries, recurring earnings from established property investment portfolios and improving prospects for the hospitality and leisure segment to provide the group with a strong foundation for sustained earnings ahead.

Barring any unforeseen events, IOIProp said in a filing with Bursa Malaysia that it remains optimistic its performance in the second half of financial year 2024 (FY24) will remain resilient, partially driven by contributions from the completion of land sales in the first half of FY24.

For the second quarter ended Dec 31, 2023, IOIProp reported a net profit of RM121.50mil compared with RM401.98mil in the previous corresponding period, while revenue was at RM606.90mil compared with RM670.44mil a year earlier.

Basic earnings per share stood at 2.21 sen versus 7.30 sen previously.

IOIProp said the decrease in revenue and underlying pre-tax profit were mainly attributable to slower performance from its property development segment and hospitality and leisure segment.

For the six-month period ended Dec 31, 2023, IOIProp’s net profit was lower at RM295.94mil against RM1.04bil in the previous corresponding period, while revenue dipped to RM1.25bil compared with RM1.36bil previously.

IOIProp said the decrease in revenue is primarily attributable to lower sales from its China operations.

“The drop in underlying pre-tax profit is mainly attributable to all segments except for the property investment segment,” it said.

Meanwhile, in a statement, IOIPG group chief executive officer Lee Yeow Seng said the company is cognisant that the operating environment both within and outside Malaysia will continue to face some headwinds.

“However, our wide property product offerings diversified across three countries, recurring earnings from established property investment portfolios and improving prospects for our hospitality and leisure segment will continue to provide IOIPG with a strong foundation for sustained earnings ahead.”

He added that IOIPG will continue to monitor the market and strategically time its launches to achieve a good take-up rate and maximise returns for the company and its shareholders.

“Additionally, IOIPG remains focused on monetising completed inventories with more promotional sales campaigns,” he said.

Lee said IOIPG’s upcoming launches feature the highly anticipated COVO Residences, a transit-oriented development serviced apartment situated in 16 Sierra @ Puchong South.

“COVO Residences is conveniently positioned just 100 metres away from the 16 Sierra MRT Station and promises seamless connectivity defined by convenience.

“Other launches include 2Rio Residence, a strategically located serviced apartment in Bandar Puteri Puchong, offering a worry-free lifestyle amidst lush landscapes, seamless accessibility and modern conveniences.”