Selangor Properties Q2 net profit lower

PETALING JAYA: Selangor Properties Bhd’s (SPB) net profit fell 22.9% to RM6.63 million for the second quarter ended April 30 against RM8.6 million in the previous corresponding period, mainly due to fair value losses recognised for its overseas investment.
It incurred an unrealised foreign exchange loss of RM1 million for the quarter under review.
The group’s revenue however, rose 18.7% to RM38.72 million from RM32.63 million, thanks to higher revenue from Australian operations despite the strengthening of the ringgit against Australian dollar.
The property developer said in a filing with the stock exchange, that for the current financial year its investment properties in Malaysia and Australia are expected to maintain their present occupancy and rental rates.
“In view of the subdued property markets in both countries, it is not expected that there will be any significant change in fair values of the properties for the year.”
SPB does not foresee any major impact on the group’s financial performance with the change in the Goods and Services Tax rate and its substitution with Sales and Services Tax.
The group also said it will re-assess the feasibility of the development of Wisma Damansara site if the government revisits the freeze on residential developments priced above RM1 million.
It expects to maintain the investment holdings with no significant changes in portfolios, but cautioned that overseas investments which are held in foreign currencies will continue to be affected by fluctuations in foreign exchange.
For the first six months of the year, SPB reported a net loss of RM34.31 million against a net profit of RM52.65 million in the same period a year ago, on the back of a 6.9% rise in revenue to RM67.41 million from RM63.08 million.
Its share price was unchanged at RM4.14 on 24,600 shares traded.