GuocoLand 4Q profit jumps over three times as property development, hospitality businesses improve

• According to GuocoLand's Bursa Malaysia filing, revenue for the quarter grew 29.09% to RM172.08 million from RM133.31 million a year earlier. With the stronger quarterly profit, earnings per share for the property development arm of Hong Leong Group expanded to 3.55 sen from 1.05 sen.

KUALA LUMPUR (Aug 16): GuocoLand (Malaysia) Bhd's net profit for the fourth quarter ended June 30, 2022 (4QFY22) jumped over three times to RM23.79 million from RM7 million a year before, due to higher contribution from the property development division and lower loss incurred by the hospitality division.

According to GuocoLand's Bursa Malaysia filing, revenue for the quarter grew 29.09% to RM172.08 million from RM133.31 million a year earlier. With the stronger quarterly profit, earnings per share for the property development arm of Hong Leong Group expanded to 3.55 sen from 1.05 sen.

GuocoLand said its improved property development business was due to ongoing projects in Emerald 9 and Emerald Hills in Cheras. Its hospitality division, meanwhile, saw higher occupancy and average room rates following the reopening of international borders and relaxed local travel restrictions.

However, its net profit for the financial year ended June 30, 2022 (FY22) dropped 66.03% to RM26.3 million from RM77.41 million a year ago, with annual revenue down 33.27% to RM434.07 million from RM650.46 million.

The drop in annual earnings was because GuocoLand's financials in FY21 accounted for the disposal of a plot of land in Jasin, Melaka. Excluding this, the group said it recorded a better performance in FY22, with a higher revenue of RM43.8 million and profit before tax of RM35 million, compared with the previous year.

Going forward, GuocoLand said the pace of economic recovery will be affected by unfolding geopolitical developments arising from the Ukraine-Russia conflict and in Taiwan Strait, the uncertainty of Covid-19, and other factors such as higher building material prices, inflation, rising interest rates, and labour scarcity.

On its part, it plans to continue to focus on monetising its inventories and progressing its development projects for timely completion. "New product launches will be phased according to prevailing market conditions. The group remains alert to opportunities to increase its land bank," it added.

Shares in GuocoLand closed unchanged at 65 sen on Tuesday (Aug 16), giving it a market capitalisation of RM455 million.