IOI Properties Group Bhd group chief executive officer Lee Yeow Seng
PETALING JAYA: IOI Properties Group Bhd
(IOIPG) expects its future performance to remain satisfactory, underpinned by its diversified product offerings across three countries, particularly the upcoming launch of Marina View Residences, Singapore.
In a filing with Bursa Malaysia, IOIPG said earnings will also be supported by a sizable recurring income stream from its established property investment portfolio and the favourable outlook of the hospitality and leisure segment.
For the fourth quarter ended June 30, 2024 (4Q24) net profit jumped to RM1.55bil from RM235.37mil in the previous corresponding period, primarily driven by fair value gain of RM1.9bil, largely attributed to the IOI Central Boulevard, which contributed RM1.3bil.
“However, the impact was partially offset by impairment losses on property, plant and equipment, as well as inventories written down totaling RM338.4mil.
“These adjustments are attributable to the China operations, reflecting the economic challenges posed by the downturn in China and the intense pricing competition near the Xiang An development.
Meanwhile, Revenue rose to RM782.61mil from RM666.46mil a year earlier, mainly attributed to improved performance across all segments.
Basic earnings per share stood at 28.08 sen compared with 4.27 sen previously.
For the financial year ended June 30, 2024 (FY24), IOIPG’s net profit improved to RM2.06bil from RM1.39bil in the previous corresponding period, while revenue rose to RM2.94bil from RM2.59bil previously.
IOIPG said the property investment segment maintained its stellar performance with a commendable growth of 32%.
For FY24, IOIPG said its property development segment achieved sales of RM2.14bil.
Commenting on the group’s performance, IOIPG group chief executive officer Lee Yeow Seng said concerted efforts to clear completed inventories over the last twelve months had yielded a reduction from RM2.41bil to RM1.92bil.
“The reduction includes a write-down of RM227.8mil related to completed inventories at IOI Palm International Parkhouse, reflecting the economic challenges due to the downturn in China and intense pricing competition near the Xiang An development.
“Additionally, Conezion Commercial units worth RM317mil were reclassified from investment property to inventories.”
