IOI Properties Group sees uptick in revenue to RM1.36 billion in 1H FY2023

Malay Mail
Malay Mail

KUALA LUMPUR, Feb 25 — The IOI Properties Group Berhad recorded a notable increase of 20 per cent in revenue to RM1.36 billion for the first half of the financial year 2023 (1H FY2023) from RM1.14 billion revenue recorded a year earlier.

In a press statement, IOI Properties said it was largely due to the marked improvement of all business segments.

"The profit before tax (PBT) for 1H FY2023 rose 136 per cent to RM1.16 billion from RM493.6 million, whereby the property development segment remains as the Group’s biggest contributor and this is partially attributable to the higher share of results of joint ventures in the latest quarter of FY2023 which has included the reversal of inventories previously written down.

"Other than that, the higher PBT is also attributed to the strong performance generated by the property investment segment and turnaround of the hospitality and leisure segment,” executive vice chairman of IOI Properties, Lee Yeow Seng said.

Although uncertainty on the economy lingers, Lee said IOI Properties will continue to forge ahead in all of its business segments, supported by the increase in demand for their wide product offerings and recurring earnings from various matured property investment portfolios, as well as improving prospects for the tourism sector.

"These will provide us with a strong foundation to assure sustained earnings for the Group,” Lee said.

As for the property development segment, it achieved commendable sales of RM926.6 million for 1H FY2023, Lee said.

"Local projects contributed RM796.6 million, which is 86 per cent of the total sales while overseas projects from China and Singapore contributed RM130 million, or 14 per cent of the total sales.

"On the Malaysian front, the sales secured were largely from Klang Valley area, at RM473.4 million, led by our integrated development at IOI Resort City in Putrajaya and our matured township at Bandar Puteri Puchong in Selangor.

"Whereas the sentiment in Johor continues to surge with sales of RM305.5 million, led by the established township at Bandar Putra Kulai and the vibrant township at Taman Kempas Utama,” he said.

Amidst the challenging external environment, the property development segment continues to witness encouraging demand for their product offerings, especially the mid-priced range of residential units, Lee added.

"In view of this, we will continue to meet the needs of the market by ensuring cost-effectiveness throughout our developments, allowing for the delivery of competitive mid-priced ranged homes,” said the Group’s executive chief officer Datuk Voon Tin Yow.

Voon said also said the Group’s strategy is two-pronged, firstly to launch new products with sustained margin as well as a concerted effort to clear completed inventories by leveraging on its ‘trusted brand’ and proven promotion campaigns to drive sales.

"The launch of ‘101 Happy Moments’, a grand and innovative marketing campaign that spans throughout our townships, has transformed our IOI Galleria showrooms into fun and exciting hubs for surrounding communities as well as showcasing our latest developments,” Voon said.