KUALA LUMPUR (Nov 28): Tropicana Corp Bhd, controlled by tycoon Tan Sri Danny Tan Chee Sing, says it is on track to achieve its targeted gross development value (GDV) of RM2.5 billion in new launches for the financial year ending Dec 31, 2019 (FY19).

Despite the muted growth experienced by the property market and conscious consumer sentiment, the property developer is already targeting new launches amounting to a GDV of RM3 billion in FY20. 

The group saw its net profit halve to RM16.8 million for the third quarter ended Sept 30, 2019 (3QFY19) from RM34.15 million a year ago, mainly due to lower revenue, as well as fixed general and administrative expenses recorded in the current quarter.

This brought a lower earnings per share of 1.18 sen for 3QFY19 compared with 2.34 sen for 3QFY18.

Revenue for the quarter also came in 19.9% lower at RM246.13 million from RM307.11 million a year ago, on lower progress billings across some of the group’s key existing on-going projects and lower sales due to weak real estate conditions.

The weak quarterly performance dragged the group's net profit for the cumulative nine months (9MFY19) down 14.1% to RM101.88 million from RM118.55 million a year ago, while revenue fell 27.5% to RM755.35 million from RM1.04 billion in 9MFY18.

In a bourse filing today, Tropicana said while the overall prospects for the industry continue to remain challenging in the short term, it believes that there will still be demand for properties in prime locations with attractive pricing.

It added that it remains well-positioned to deliver sustainable earnings performance for the rest of the year, anchored on 14 on-going projects located in the Klang Valley and southern regions of Peninsular Malaysia.

"Tropicana will be opening its second hotel and the first 199-room Courtyard by Marriott in Penang in FY20 to further strengthen its investment property portfolio and boost its recurring income stream," it said. 

Tropicana shares closed one sen or 1.09% higher at 93 sen today, with 407,000 shares traded. The stock is up 14% since hitting its low of 81 sen in October, valuing the group at RM1.36 billion.