I-Bhd's 2Q profit jumps 72% on strong property sales

KUALA LUMPUR (July 20): I-Bhd’s net profit for the second quarter ended June 30, 2016 (2QFY16) soared by 72.32% from the previous comparable period to RM14.68 million, as the developer of i-City credited it to stronger property sales.

Its revenue rose by 64.39% to RM86.68 million in the quarter, from RM52.73 million.

In the financial period to date (1HFY16), I-Bhd made a net profit of RM30.04 million, up 60.17% year-on-year. Its earnings per share in the period was 2.83 sen, versus 1HFY15’s 1.77 sen.

Revenue for 1HFY16 came to RM167.12 million, which was 30.49% higher than the previous corresponding period’s RM128.07 million.

According to the explanatory notes accompanying its 2QFY16’s financials, I-Bhd’s strong double-digit growth in top and bottom lines were supported by its property development segment.

Compared to 1HFY15, I-Bhd said this division recorded further sales “from the existing projects such as i-SOHO, i-Suite, Liberty, Parisien Tower, and new launches during the year, 8Kia Peng and Hyde Tower, as well as the advancement of the construction progress.”

However, the financial performances of its two other segments, property investment and leisure, regressed. The former segment’s revenue of RM2.33 million in 1HFY16 was 45.79% lower than the year prior, as I-Bhd said the ijarah agreement with Al-Rajhi Banking and Investment Corp Malaysia Bhd expired in November 2015.

As for its leisure segment where sales from its theme park business is parked, its revenue fell by 17.73% in the period to RM18.94 million and recorded a loss of RM1.48 million — as compared to a pre-tax profit of RM1.47 million the year prior.

“The (leisure) segment showed unfavourable results as compared to the preceding financial year’s corresponding quarter, due to a decrease in the number of visitors to the theme park owing to the Ramadan period,” I-Bhd said.

But as I-Bhd is riding on the strong momentum generated by its property development business, the group said the segment will contribute positively to its financial performance for the rest of the year.

“Contribution from the property development division is expected to be higher in 2HFY16, compared to 1HFY16, as the i-SOHO project will be completed and handed over to the purchasers. At the same time, with the expected completion of the car park podium, the construction progress of the remaining developments (i-Suites, Parisien, Liberty and Hyde towers) can progress at a faster rate,” I-Bhd said.

I-Bhd had unbilled sales of RM718.6 million as at June 30 this year, against RM580.2 million recorded on June 30, 2015, it said.

“As the construction progresses, the board (of I-Bhd) expects the existing, as well as the continuous build-up of sales commitment, to translate into higher revenue for the group in the future,” I-Bhd added.

Shares of I-Bhd were flat at 51.5 sen at noon break, bringing its market capitalisation to RM505.94 million. — theedgemarkets.com

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