PETALING JAYA: Analysts are mostly positive on the earnings outlook of KLCC Property Holdings Bhd (KLCCP) for the upcoming fourth quarter of financial year 2024 (4Q24).
For its latest financial results, KLCCP posted a net profit of RM206.53mil, translating to a basic earnings per share of 11.44 sen, in 3Q24 ended Sept 30. Its revenue saw a slight increase of 7.09% y-o-y to RM429.62mil during the quarter, compared with RM401.16mil in the same quarter a year ago.
As for the nine months ended Sep 30, (9M24), the group recorded a net profit of RM585.62mil and revenue of RM1.25bil. Its basic earnings per share was 32.44 sen during the period.
The group had also declared a dividend of 9.2 sen in 3Q24, bringing its cumulative nine-month dividend to 27.4 sen.
Hong Leong Investment Bank Research (HLIB Research) deemed the results to be 76% in line with its full-year forecast for KLCCP and 72% of consensus estimates.
Explaining the results, HLIB Research noted the revenue increase during the quarter was attributable to improvements across KLCCP’s retail, hotel and management-services divisions.
Year-to-date, topline revenue, which rose by 6.4%, was also largely driven by the retail, hotel and management-services segments. Higher room occupancy and average room rate contributed to the hotel segment, while the retail segment benefitted from higher occupancy, foot traffic growth and tenant sales.
The increase in maintenance-service activity during the quarter played a part in the growth in management services.
HLIB Research forecasts higher revenue for KLCCP in the final quarter of the year and beyond, driven by the continued robustness of its retail and hotel segments due to strong recovery in tourism.
“The acquisitions of the 40% stake in Suria KLCC, completed in 2Q24, will further enhance KLCCP’s profitability, with lower minority interest going forward,” the research house said.
