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Wednesday, February 20, 2008

Profit boost for Bandar Raya, SunCity

PETALING JAYA: Bandar Raya Development Bhd and Sunway City Bhd (SunCity) yesterday reported healthy profit growth in their last financial quarters, lifted by strong demand for high-end projects.

An artist’s impression of One Menerung, a project by Bandar Raya.

The two property development companies, together with smaller-sized OSK Property Holdings Bhd, also expect better results, going forward, despite market concerns of tougher times ahead.

“The group looks forward to a (financial) year (ending Dec 31) of strong growth, driven by the positive momentum in its property division,'' Bandar Raya told Bursa Malaysia yesterday.

Bandar Raya is the developer of The Troika and One Menerung in Kuala Lumpur. It has unbilled sales in excess of RM1bil, with some RM2bil of new projects to be launched.

The company made a net profit of RM69.6mil, or 14.6 sen per share, for the financial year ended Dec 31 (FY07) against RM1.18mil, or 0.25 sen per share, in FY06.

“Accounting for almost the entire group profit, the property division enjoyed a good year with robust demand for its premium properties in good locations,'' it said.

Bandar Raya owns a 56.8% stake in Mieco Chipboard Bhd, which reported a net profit of RM2.3mil, or 1.1 sen per share, for the year just ended.

Shares in Bandar Raya fell 6 sen yesterday to RM2.06 – the lowest level since March last year.

Meanwhile, SunCity, said performance for its second quarter ended Dec 31 was lifted by the revaluation of Sunway Pyramid shopping mall.

Excluding the fair value gain of RM315.7mil, the company said its second-quarter pre-tax profit of RM101mil was 33% better than the RM63.7mil achieved in the previous corresponding period.

SunCity's six-month net profit stood at RM214.7mil, or 46 sen per share, versus RM62.1mil, or 15 sen per share, in the previous corresponding period.

“The board maintains its positive outlook for the year ending June 30, backed by record unbilled sales of RM964mil as at end-December and RM219mil for the en bloc sales of Palazzio Condominium signed last month,'' it told Bursa yesterday.

The stock fell 8 sen yesterday to RM3.56, its lowest since March 2007.

Shares in both SunCity and Bandar Raya are down by more than 30% from their recent peaks in October last year.

OSK Property also sees a better financial year ending Dec 31 (FY08). The company reported a big improvement in profits in the last quarter ended Dec 31, boosted by sales of “higher margin products''.

“The group will continue to improve sales launching and marketing efforts for its ongoing and upcoming projects in the Klang Valley,'' it said yesterday.

OSK Property posted a net profit of RM4.44mil, or 3.66 sen per share, for FY07 against RM3.06mil, or 3.28 sen per share, in FY06.

Penang-based Hunza Properties Bhd is expected to release its second-quarter results today.

By The Star (by Izwan Idris)

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