KUALA LUMPUR (Nov 14): GuocoLand (Malaysia) Bhd, the property arm of Hong Leong Group, began its financial year ending June 30, 2023 (FY23) on a strong note after swinging back to profitability with a net profit of RM1.57 million in the first quarter ended Sept 30, 2022 (1QFY23) compared with a net loss of RM7.98 million in the same period last year.

This was mainly attributable to higher contribution from the property development division and lower loss incurred by the hospitality division.

As such, the property developer posted earnings per share of 0.24 sen from a loss per share of 1.19 sen recorded previously, its Bursa Malaysia filing on Monday (Nov 14) showed.

Quarterly revenue almost tripled to RM102.5 million from RM35.13 million in the same period a year earlier.

GuocoLand's property development division reported a better performance due to contributions from its ongoing projects of Emerald 9 and Emerald Hills in Cheras.

Concurrently, the performance of the hospitality division improved with higher occupancies and average room rates due to the increase in tourist arrivals coupled with the simplification of entry regulations into the country and enhanced local travel and business activities.

On a quarter-on-quarter basis, GuocoLand's net profit tumbled 93.39% from RM23.79 million posted for 4QFY22 as revenue dropped 40.43% from RM172.08 million recorded in the immediate preceding quarter.

Looking ahead, GuocoLand noted strong domestic demand, new infrastructure projects and a vibrant service sector will offset some of the risks from a global slowdown.

However, it cautioned that factors such as elevated building material pricing, inflation, rising interest rates, currency volatility and shortage of labour continue to pose challenges to the domestic property sector.

"The group will continue to focus on monetising its inventories and progressing its development projects for timely completion.

"New product launches will be phased according to prevailing market conditions. The group remains alert to opportunities to increase its land bank," it added.

GuocoLand's share price finished half a sen or 0.75% lower at 66.5 sen on Monday, bringing the group a market capitalisation of RM465.8 million.