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IOI Properties Group Records Higher Revenue and Operating Profit for Q1 FY2021

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Press Release: IOI Properties Group Records Higher Revenue and Operating Profit for Q1 FY2021

IOI Properties Group Berhad (IOIPG) recorded higher revenue and operating profit in the first  quarter ended 30 September 2020 (Q1 FY2021) compared to the preceding year corresponding quarter. The Group’s revenue increased by 22% or RM119.4 million to RM659.7 million while  operating profit was higher by 17% or RM42.3 million to RM293.9 million in Q1 FY2021. The  improvement in both revenue and operating profit was mainly attributed to better performance in  the property development segment. 

Despite the challenging environment during this pandemic period, revenue and operating profit for  the property development segment surged 38% and 31% to RM549.7 million and RM249.1 million respectively in the current year quarter. The better financial performance was attributed to higher  sales contribution from the operations in Malaysia and China. Revenue and operating profit in the  property investment segment were RM83.2 million and RM47.1 million respectively, while the hospitality and leisure segment achieved revenue of RM24.5 million. 

Meanwhile, the Group’s net profit was RM192.6 million compared to RM164.3 million in the  preceding year corresponding quarter. 

IOI Properties Group
Image: IOIPG Chief Executive Officer Dato’ Voon Tin Yow

IOIPG Chief Executive Officer Dato’ Voon Tin Yow welcomed measures to boost the property  sector as announced in Budget 2021 by the Malaysian government on 6 November 2020.  

“We are supportive of the government’s proposal on full stamp duty exemption for the transfer of  ownership document and loan agreement for the purchase of a first home worth not more than  RM500,000 from January 2021 to December 2025. The COVID-19 pandemic has resulted in  purchasers deferring or reassessing their decision to buy property. The full stamp duty exemption  will help in reducing the cost of transaction to enable first-time buyers to enter the property  market,” he said. 

The measures announced in Budget 2021 coupled with the on-going Home Ownership Campaign  under the National Economic Recovery Plan (PENJANA) would spur the property market and  continue to drive sales of mid-priced range products that remain sought after in IOIPG’s integrated  developments, added Dato’ Voon.  

The Group’s China operations continued to contribute strongly to its financial performance in Q1  FY2021 due to pent-up demand following the country’s recovery from the COVID-19 pandemic.  Demand for residential properties is anticipated to normalise and subsequently, to moderate in the  coming quarters.  

The recovery of the property investment, and hospitality and leisure segments remained impacted by  the reinstatement of the Conditional Movement Control Order (CMCO) by the Malaysian  government in light of the resurgence in COVID-19 cases. Nevertheless, the Group will continue  to adopt active, pragmatic tenant retention strategies to maintain occupancy rates and to support its  business partners and tenants in the interest of long-term sustainable collaborations while  implementing aggressive marketing and cost optimisation strategies for medium to long-term  recovery.  

The Group will continue with its prudent and professional management approach to ensure the  delivery of satisfactory performance in the coming quarters while consolidating its market position  and strengthening its competitive edge to seize any opportunity which may emerge when the  situation improves. 

IOIPG in embracing the new norm, will leverage on its digital marketing capabilities and IOI  eMarketplace platform to drive sales and to expedite property transaction processes. The Group  will also continue with its Digital Transformation journey with the deployment of technology to  enhance customer experiences by automating and integrating its business processes, underpinning its  commitment to maintaining its competitive edge as an integrated developer of excellent service and  high quality standards.  

— End of press release from IOI Properties Group–

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