TA Global's 3Q profit slumps 90% with lower sales from Australian projects

KUALA LUMPUR (Nov 21): TA Global Bhd’s net profit slumped 90% to RM6.39 million for the third quarter ended Sept 30, 2019 (3QFY19) from RM66.41 million a year ago, mainly dragged by its property development and investment holding divisions.

As a result, earnings per share fell to 0.12 sen from 1.25 sen last year. Revenue was 67% lower at RM203.6 million versus RM616.29 million previously, according to the group’s filing with the local exchange.

Its property develoment division incurred a loss before tax of RM700,000 in 3QFY19 compared to a profit before tax (PBT) of RM95.3 million a year ago, as it recognised lower sales from its development projects in Australia. Its investment holding business also fell into losses with a loss before tax of RM9.5 million versus a PBT of RM3.9 million previously.

At the same time, its finance and related service division's PBT fell 93% to RM600,000 from RM9.2 million, as it recorded lower interest income.

Its property investment, however, saw a higher PBT of RM4.1 million, up 128% from RM1.8 million last year due to higher net rental income and lower finance cost. Its hotel operations business also registered a higher net operating profit of RM17.4 million versus RM800,000 last year, following the absence of impairment loss.

For the cumulative nine-month ended Sept 30 (9MFY19), its net profit sank 55% to RM137.13 million from RM304.65 million last year as revenue dropped 67% to RM578.05 million from RM1.76 billion.

Separately, the group also said its public holding spread as at yesterday is 24.538%, which is still short of the required 25%. But Bursa Securities has, in August, gave it six more months till Dec 28 to comply with the requirement.

"The company is in the process of finalising the alternative plan to address the shortfall in public shareholding spread requirement and will make the relevant announcement on the finalised plan to address the non-compliance in due course," it said in another filing.

TA Global's shares ended half a sen higher at 25.5 sen apiece yesterday, giving it a market capitalisation of RM1.36 billion.

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