Selangor Dredging 4Q profit jumps eight times on property revaluation

KUALA LUMPUR (June 1): Selangor Dredging's net profit jumped by more than eight times to RM50.62 million for the fourth quarter ended March 31, 2017 (4QFY17), from RM6.26 million a year earlier, thanks to a revaluation surplus of the group's investment properties.

Earnings per share rose to 11.88 sen from 1.47 sen, the property developer said in a filing with Bursa Malaysia.

The group said the bulk of the revaluation surplus came from four blocks of office towers atop a common two-level basement car park located in Kuala Lumpur.

The revaluation was conducted by Raine & Horne International Zaki & Partners Sdn Bhd on March 22.

Selangor Dredging's revenue for 4QFY17 grew 23.41% to RM45.67 million from RM37.01 million in 4QFY16.

The group has declared a first and final dividend of 2.5 sen per share for FY17.

Cumulatively, the group's net profit for FY17 climbed 38.03% to RM59.47 million from RM43.09 million in FY16, while revenue went up by 1.47% to RM219.75 million from RM216.56 million in FY16.

Selangor Dredging said the outlook remains challenging in view of global economic sentiment, softening of the national currency and stringent approach by financial institutions in approving property loans.

Nonetheless, the group said it will continue to strategise its marketing approach to convert its inventories into sales and adopt cautious approach in launching any new projects.

"Currently the group has approximately RM322 million of unbilled sales on hand which derived from mainly ongoing projects," it said.

Selangor Dredging's share price traded unchanged at 91 sen yesterday, giving the group a market capitalisation of RM387.78 million. — theedgemarkets.com

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