Datuk Eu Hong Chew
PETALING JAYA: i-Bhd’s revenue for the third quarter ended Sept 30 jumped to RM35.54mil, from RM16.32mil a year earlier, on higher percentage of completion recognised from ongoing property development projects.
In a filing with Bursa Malaysia, the master developer of i-City said that revenue for the quarter improved due to sales recognition from the launch of i-Residence, i-SOVO (small office, versatile office) and i-SOHO (small office, home office).
Net profit for the quarter, however, fell to RM2.68mil from RM3.95mil in the previous corresponding period on the back of high non-recurring operating costs in the leisure segment.
Under this segment, i-Bhd said profit was affected by higher depreciation charges from new attractions, as well as the write-off of some of the exhausted assets.
For its nine-month period, i-Bhd posted a 168% increase in revenue to RM96.49mil from RM35.92mil, while net profit rose to RM14.39mil from RM7.74mil a year earlier.
The property development division contributed RM59.9mil, representing 62% of the year-to-date group revenue.
In a statement, group deputy chairman Datuk Eu Hong Chew said that as at Sept 30, i-Residence generated RM150mil in unbilled sales, while i-SOVO’s unbilled sales stood at RM30mil.
“From now till the completion of both projects next year, we expect i-Residence’s sales revenue to be in the region of RM20mil to RM25mil per quarter, while that of i-SOVO to be at RM10mil to RM15mil per quarter,” he said.
He expects i-SOHO to contribute more to the group next year.
Eu said i-City’s theme park and its two latest leisure attractions – wax museum Red Carpet and the House of Horror - had contributed positively in terms of visitor count and ticket sales.
The third-quarter results were in line with the company’s plan for property development to be its main revenue and profit contributor in the future, he said. The total gross development value (GDV) of the group’s ongoing projects as well as those to be launched in the next six months stood at RM1.89bil at present.
“With historically higher performance from our leisure division in the final quarter (coinciding with the school and year-end holidays), we are on course to register a much stronger pre-tax profit margin for our financial year ending Dec 31, 2013 compared with the previous year,” he said.
In its 2012 annual report, the group had projected a pre-tax profit of RM65mil for 2013. However, taking into account its performance to-date, it has revised its projection to be in excess of RM50mil.
“As a whole, I can only sum up that our company is financially sound with zero gearing. Our much-awaited property projects have come to fruition, our dividend policy is here to stay and we have in place a list of projects to see us through to 2020,” he said.
In October, the group acquired a 0.42ha land in Jalan Changkat Kia Peng to develop the Grand i-Residence project. The project, which has a GDV of RM820mil, is to be launched in the second quarter of 2014.
The project comprises 442 fully furnished luxury residential units in a 50-storey skyscraper, with an average selling price of RM2,300 per sq ft.