TA Enterprise 2Q net profit at RM71m, revenue up 84%

KUALA LUMPUR (Aug 26): TA Enterprise Bhd registered its fourth consecutive profitable quarter in April-June 2017, with a net profit of RM70.89 million on higher contribution from its broking, investment holding, and hotel operation divisions.

Comparatively, the group posted a net loss of RM17.14 million for the same quarter in 2016.

Quarterly revenue leapt 84.49% to RM312.69 million, of which hotel operations made up the largest slice of the pie. The group registered RM169.49 million in revenue in the same quarter a year ago.

For the first six months of the year, the group posted a net profit of RM154.11 million versus a net loss of RM97.51 million in the prior corresponding period. Half-year revenue was up 68.59% at RM620.05 million from RM367.78 million in the previous year.

In its filing with Bursa Malaysia yesterday, the group said its increase in net operating profit for the hotel division was mainly due to higher occupancy rates for its hotels as well as the appreciation of the US dollar against the baht.

Its broking and financial services division recorded higher profit on brokerage income, while the investment holding division enjoyed higher investment interest income, fair value gain on investment securities, and net foreign exchange gains.

However, the credit and lending division recorded lower profit on foreign exchange losses and higher interest income.

The property investment division was also less profitable, largely due to higher finance costs, while the property development segment recorded higher contribution in the first half of the year from an Australian development project.

Going forward, the group said it remained hopeful that trading on the local bourse would improve slightly to sustain its financial services business, while the credit and lending division is expected to be challenging.

Steady recurring income is expected from local and overseas property investments, although the tough property outlook in Malaysia is expected to challenge its property development division.

Meanwhile, stronger recurring income is expected from its hospitality businesses overseas, TA Enterprise said.

The group's share price closed down 1 sen at 65 sen to give it a market value of RM1.11 billion. — theedgemarkets.com

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