Ideal Capital's 2Q profit slips as cost accelerates; Ooi Kee Liang steps down as chairman

• Revenue rose 38% year-on-year (y-o-y) to RM235.1 million from RM170.5 million, but cost of sales rose 52% to RM171.62 million, from RM112.98 million previously.

KUALA LUMPUR (Aug 22): Property group Ideal Capital Bhd (KL:IDEAL) saw its net profit for the second quarter fall 14%, dragged down by a jump in cost of sales despite higher revenue.

Net profit for the three months ended June 30, 2025 (2QFY2025) declined to RM24.6 million, or 4.97 sen per share, from RM28.8 million, or 5.75 sen per share a year earlier, the group said in a Bursa Malaysia filing on Friday.

Revenue rose 38% year-on-year (y-o-y) to RM235.1 million from RM170.5 million, but cost of sales rose 52% to RM171.62 million, from RM112.98 million previously.

The group's ongoing projects under construction include Ideal Venice, Lucerne Residences, and Maldives Residences.

No dividend was declared for the quarter under review.

For the cumulative six months ended June 30, 2025 (1HFY2025), net profit fell 13% y-o-y to RM39.6 million from RM45.5 million, while revenue rose 33% y-o-y to RM430.8 million from RM324.4 million.

Looking ahead, the group expects the property development sector to continue supporting revenue and profit, backed by progress on Ideal Venice, Lucerne Residences and Maldives Residences. Sales of industrial land, which began in 2023, are also expected to contribute to growth.

In a separate filing, Ideal Capital announced that Tan Sri Ooi Kee Liang has stepped down as its executive chairman with immediate effect after eight years, citing the company’s transition. The group, however, has yet to announce Tan's successor.

The group also reported several boardroom changes, including the resignation of independent and non-executive director Mokhtar Abdullah, the appointment of Datuk Ang Chuan Im as an executive director, and the appointment of two independent and non-executive directors, Datuk Nik Ali Mat Yunus and Datuk Ng Chin Tuck.

Independent director Tan Wooi Chuon, meanwhile, will be redesignated as a non-independent and non-executive director.

Shares in Ideal Capital ended unchanged at RM3.40 on Friday, giving the group a market capitalisation of RM1.7 billion.

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