Naim Indah suffers RM1.97m net loss in Q3

PETALING JAYA: Naim Indah Corp Bhd suffered a net loss of RM1.97 million for the third quarter ended Sept 30, 2017 compared with a net profit of RM30.54 million a year ago, due to lower revenue and operating profit.
In a filing with Bursa Malaysia today, the company said it recorded lower operating profit from project management consultancy activities.
It also saw higher operating cost for investment property. In addition, there was a fair value gain from the investment property of RM31.55 million a year ago.
Revenue for the quarter plunged 84.86% to RM429,000 from RM2.83 million.
For the nine months ended Sept 30, 2017, it recorded a net loss of RM1.73 million compared with a net profit of RM30.77 million while revenue fell 11.93% to RM7.13 million from RM8.10 million a year ago.
Despite the modest outlook on the property market for the rest of 2017, Naim said it will continue seeking more project management consultancy contracts to remain profitable.
"For the remaining 2017 and forthcoming 2018, the retail market is expected to be challenging. Furthermore, filling up the investment property's (mall) remaining vacancies remain a challenge as many options are available in the market and attractive rent is offered by competitor to seize potential tenants," it said.
Naim said it will ramp up marketing efforts to attract more potential tenants while continuing to seek improvement in occupancy rate and manage its operational cost effectively.
Meanwhile, it is also identifying suitable business opportunities to venture into property investment, construction and other feasible development projects, which will contribute positively to its performance.