KUALA LUMPUR (Feb 13): Property investment group Goldis Bhd – which is in the midst of a takeover of IGP Corp Bhd – revealed that its fourth quarter net profit has tripled year-on-year, thanks to better performance from its retail property investments, and a disposal gain.

In a filing with the stock exchange today, Goldis said net profit for the fourth quarter ended Dec 31, 2017 (4QFY17) jumped to RM59.88 million from RM16.29 million in the corresponding quarter last year.

The group said its property investment in the retail sector — namely IGB REIT, the owner of Midvalley Megamall and The Gardens Mall — did better, while it netted a one-off gain of RM27.3 million from the sale of land by a subsidiary, which was recognised in its property development segment during the quarter.

Quarterly revenue, meanwhile, was up 16% y-o-y to RM362.67 million from RM312.19 million, mainly due to the recognition of revenue of RM61.9 million from the land sale, which mitigated lower contribution from Goldis’ hotel segment.

This brought Goldis’ FY17 net profit to RM215.14 million, up 30% from RM165.03 million in the last financial year.

Full-year revenue, however, slid 4.3% to RM1.2 billion from RM1.26 billion in FY16, due to the lower contribution from its hotel and investment segments.

Its hotel segment saw a 19.6% decline in revenue following the disposal of three hotels (Cititel Express Kuala Lumpur in March 2016, MiCasa Hotel Apartment, Yangon, in July 2016, and Renaissance Kuala Lumpur Hotel in Jan 2017). Its investment segment, where it derives revenue mainly from Mid Valley City Energy Sdn Bhd which distributes electricity in Mid Valley City and IGB International School, registered a 34% decline in topline due to lower utility consumption by tenants at Mid Valley.  

Going forward, Goldis said the group expects full consolidation of its businesses to create a more cohesive, effective and efficient operating structure, with the completion of IGB Corp takeover.

It expects stable performance within its hotel segment despite stiff competition in the industry, but foresees challenges for its property investment and property development segments given the increased supply, weak sentiment, and the recent hike in interest rate.

Goldis, which holds a 73.4% stake in IGB Corp and has targeted to complete its takeover by March this year, will become one listed entity following that and be renamed Ipoh Goldis Bersatu Bhd.

At 5pm, the counter closed unchanged at RM3.10, which valued it at RM1.9 billion.