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.
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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