Update Naim’s Q2 profit jumps 217% to RM28.76m helped by disposal of interests in associate

by **Cals** Fri 22 Aug 2014, 01:29

Update Naim’s Q2 profit jumps 217% to RM28.76m helped by disposal of interests in associate

Business & Markets 2014

Written by Chen Shaua Fui of theedgemalaysia.com

Thursday, 21 August 2014 21:25

KUALA LUMPUR (Aug 21): Property developer Naim Holdings Berhad’s net profit shot up 217% to RM28.76 million for the second quarter ended June 30, 2014 from RM9.08 million a year earlier.

This was mainly contributed by a substantial gain of RM61.7 million arising from the disposal of partial interests in an associate during the period, the company said in a statement today.

“Improvement in our main business segments, i.e. property and construction divisions, also led to the increase in the overall group profit for the period,” Naim said.

Revenue for 2QFY14 fell to RM158.10 million from RM184.6million in 2QFY13.

For the first half of 2014, revenue stood at RM312.16 million against RM313.77 million for 1Q2013.

“The revenue remained strong, mainly contributed by the construction segment on account of higher progress of higher progress of construction works of existing projects, especially from those contracts secured in 2013,” Naim said,

Cumulative first half net profit jumped 148% to RM124.58 million from RM50.24 million a year earlier.

Naim said that its sales performance continued to be sustained by solid market support in its existing established townships located in Miri which registered strong take-up rates.

However, it expected slower take-up rates in the newly launched products comprising high rise condominium and high end commercial units in Kuching and Bintulu.

“We remain cautious going forward, in view of the mixed outlook of property market in Sarawak for the year ahead. Product planning and pricing as well as tightening of costs control strategies are amongst the key measurements to be implemented in order to sustain the performance in our property segment,” Naim said.

The company added that that a number of sizeable construction tenders has been submitted and it was cautiously optimistic to secure some to replenish its order book, which currently stands above RM1 billion.