IOI Properties expects its diversified product offerings to sustain earnings

PETALING JAYA: IOI Properties Group Bhd (IOIPG) expects its diversified product offerings spanning across three countries, recurring earnings from established property investment portfolios and improving prospects for the hospitality and leisure segment to provide the group with a strong foundation for sustained earnings ahead.

Barring any unforeseen events, IOIPG said in a Bursa Malaysia filing that it remains optimistic that its performance in the second half of the financial year will remain resilient, partially driven by contributions from the completion of land sales secured in the first half of financial year 2024 (FY24).

For the second quarter ended Dec 31, 2023, IOIPG reported a net profit of RM121.50mil compared with RM401.98mil in the previous corresponding period, while revenue was at RM606.90mil compared with RM670.44mil a year earlier.

Basic earnings per share stood at 2.21 sen versus 7.30 sen previously.

IOIPG said the decrease in revenue and underlying pre-tax profit were mainly attributable to lower performance from its property development segment and hospitality and leisure segment.

For the six-months period ended Dec 31, 2023, IOIPG’s net profit was lower at RM295.94mil against RM1.04bil in the previous corresponding period, while revenue dipped to RM1.25bil compared with RM1.36bil previously.

IOIPG said the decrease in revenue is primarily attributable to lower sales from China operations.

“The decrease in underlying pre-tax profit is mainly attributable to all segments except for the property investment segment,” it said.