TA Enterprise 2Q earnings jump 151% to RM26m

KUALA LUMPUR: TA ENTERPRISE BHD []’s earnings soared 151.3% to RM26.24 million in the second quarter ended July 31, 2011 from RM10.43 million a year ago, boosted by higher contribution from its property arm, TA Global Group.

It said on Wednesday, Sept 21, revenue rose 8.6% to RM156.00 million from RM143.56 million. Earnings per share were 1.53 sen compared with 0.61 sen.

TA Enterprise said the higher profit was mainly due to higher interest incomes, gains on foreign exchange translations and higher hotel profits although these contributions were at times lower due to time lags between the completion of old projects and launching of new projects. Also, higher hotel profits were due to the increase in hotels acquired by the group.

However, the group's property arm was expected to soften in line with the volatility in the Malaysian stock market as well as the slowing growth in the global economy.

But with the current low interest rates environment, the group is confident that its sales of on-going domestic projects will continue to do well.

For the first six months ended July 31, 2011, net profit increased 81% to RM59.96 million from RM33.13 million a year ago. Revenue rose 15.6% to RM330.72 million from RM285.90 million.