Symphony Life issues profit warning, defers RM2 bil property launches

SHAH ALAM (Sept 9): Symphony Life Bhd said performance for current financial year ending March 31, 2016 (FY16) would be worse than the previous year, as the property developer contended with slower demand.

Chief operating officer Stewart Tee said Symphony Life was holding back RM2 billion worth of real estate launches in the Klang Valley to focus on existing projects, in view of the current market. Tee said many existing projects were at the foundation stage.

"Hence, we can only realise the contribution next year. We are deferring some of our launches, due to the weakening of the property sector lately.

"The group is also actively on the lookout for new land bank for future development," he told reporters, after the company's annual general meeting here today.

Tee said Symphony Life's deferred launches included projects in Bandar Sunway and Puchong, Selangor.

The launches have been postponed until next year or 2017, according to him.

Symphony Life's financials have weakened. FY15's net profit fell to RM41.81 million, from RM51.45 million a year earlier. Revenue was lower at RM286.78 million, versus RM391.19 million.

In 1QFY16, net profit dropped to RM2.04 million, from RM11.01 million a year earlier. Revenue was lower at RM40 million, compared to RM82.73 million.

Today, Tee said Symphony Life had unbilled property sales of RM700 million as at June 2015.

The unbilled sales could support the group's income for the next four years, according to him.

At 12:30pm today, Symphony Life's shares rose 0.5 sen or 0.7% to settle at 75 sen, for a market capitalisation of RM232.2 million.

The share price compares to the company's latest reported net assets per share of RM2.12.