Guocoland 4Q profit jumps on hefty revaluation gain of RM112.5 mil

by **Cals** Tue 26 Aug 2014, 09:49

Business & Markets 2014

Written by Gho Chee Yuan of theedgemalaysia.com

Monday, 25 August 2014 20:42

KUALA LUMPUR (Aug 25): Guocoland (Malaysia) Bhd saw its net profit balloon 694% in the fourth quarters ended June 30, 2014, to RM112.32 million from RM14.14 million a year earlier, boosted by revaluation of its investment properties.

According to an announcement to Bursa Malaysia yesterday, Guocoland said it gained some RM112.5 million arising from the valuation of its investment properties.

Revenue for the quarter, however, dropped 22.5% to RM57.97 million from RM74.79million a year ago due, to lower contribution from the commercial project in Old Klang Road.

Earning per share grew significantly to 16.77 sen as a result of the hefty revaluation gain, from 2.11 sen previously.

The company declared dividend of 2 sen per share, as compared to 1.5 sen last year.

Net profit for the full financial year ended June 30 also jumped 265.1% to RM153.23 million, from RM41.97 million the year before, while cumulative revenue fell to RM236.55million, from RM263.26million previously.

Looking forward, Guocoland said the property market outlook and sentiment are expected to continue to be cautious, amid Bank Negara's credit tightening rules and rate increases.

"Despite this, we believed properties in selected segments and good locations continue to attract interest," it said.

The group is also optimistic that it could well perform in the next financial year, on the back of continued contributions from the property development segment, associates and joint ventures, and the hotel segment.