I-Bhd 4Q earnings falls, but full-year net profit up

KUALA LUMPUR (Feb 16): I-Bhd recorded a 9.9% decline in net profit to RM14.16 million or 1.33 sen per share for its fourth quarter ended Dec 31, 2016 (4QFY2016) from RM15.71 million or 1.48 sen per share a year ago, due to lower contributions from its property investment and leisure segments during the quarter under review.

Revenue, however, climbed 38.8% to RM102.86 million from RM74.1 million, on higher sales from existing projects such as i-SOHO, i-Suite, Liberty, Parisien Tower and new launches during the year. The advancement in the progress of the construction works also helped to increase the figure.

For the full year (FY2016), I-Bhd saw net profit rise 54.9% to RM66.63 million or 6.28 sen per share from RM43.02 million or 4.05 sen per share in FY2015, while revenue grew 49% to RM383.57 million from RM257.39 million in FY2015.

In a filing with Bursa Malaysia today, I-Bhd said with the completion of the i-SOHO and i-Suite projects as well as launches of a new project, the property development segment results for FY2017 is expected to be higher compared with FY2016.

In the second quarter of 2017, the group will unveil a high-end residential project called Converse @ i-City in Shah Alam, Selangor. The project features a 19-storey, 204-unit fully furnished and Internet of Things-ready development, which resides above 23-storey DoubleTree by Hilton i-City Shah Alam.

"The property development segment (will) continue to contribute positively to the group's performance in FY2017," said I-Bhd. In FY2016, its property development division was the largest contributor to the group's revenue at 87% of the total, while the leisure segment accounted for 12%.

I-Bhd's unbilled sales stood lower at RM573.3 million as at Dec 31, 2016 compared with RM691.7 million a year ago.

"Despite the slower market sentiment in 2016, the property development segment has achieved a fairly consistent level of sales as that of 2015 in i- City. These sales and unbilled sales will ensure that the group continues to have a strong revenue pipeline in the future," said I-Bhd.

In a separate statement today, I-Bhd executive chairman Tan Sri Lim Kim Hong said the development of i-City remained the main contributor to the group and will continue to do so for the next 10 to 15 years. As at the end of 2016, only 10% of the approved gross floor area of i-City has been completed.

"Since the launch of i-City more than a decade ago, the group has enhanced i-City to a RM9 billion gross development value (GDV) project from RM1.5 billion GDV at the start. There still are opportunities to enhance the GDV of i-City further.

"The planned LRT3 station in i-City allows us to transform i-City into a transit oriented development with a higher plot ratio for the balance of i-City's development, and which could be of significant benefit to redevelopment of the six acres of low-rise shop office units completed in 2008 into high-rise developments," he added.

Lim also noted that the group continues to remain financially strong with RM180 million in cash as at the end of 2016, with zero bank borrowings.

"This enables the group to continue with its plans undeterred regardless of the challenging property outlook, as well as place it in a strong opportunistic position to potentially build on its land bank," he added.

Barring any unforeseen circumstances, I-Bhd expects the group to achieve commendable operating results for FY2017.

At 2.55pm, I-Bhd shares were traded down 2.5 sen or 3.91% at 61.5 sen, with 2.81 million shares changing hands. Its market capitalisation stood at RM617.4 million. — theedgemarkets.com

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