TAE Q3 net profit falls to RM17.6m

Financial services and property development group TA Enterprise Bhd's (TAE) third-quarter net profit fell more than half to RM17.58 million, due to lower contribution from its property business.

Net profit for the quarter ended October 31 2009 dropped 54 per cent from RM38.2 million in the same period a year ago.

Revenue was 16.6 per cent lower at RM118.2 million from RM141.7 million a year ago.

TAE attributed the decrease in the group's net profit to the lower revenue from stockbroking and property divisions and lower gain on disposals of investments.

The reduction in profit was, however, cushioned by the lower net provision for doubtful debts and impairment losses on investments.
In its filing to Bursa Malaysia yesterday, TAE said it expects to perform satisfactorily for the financial year ending January 31 2010.

The company said the current economic statistics show that the economy seems to be in the path of recovery.

The relatively low interest rate prevailing in the market should support the economic growth and boost the activities of the financial market.

However, the newly imposed Real Property Gain Tax of 5 per cent on gain on disposal of properties may impede the growth of the property sector, it added.

By Business Times