Surge in I-Bhd Q3 profit

Company’s income rallies 162% on the back of i-City project

PETALING JAYA: Property developer I-Bhd posted a strong set of financial results for its third quarter ended Sept 30, 2016, as earnings surged 162% to RM22.42mil, underpinned by the company’s i-City project.

Revenue during the quarter jumped 106% to RM113.58mil from RM55.22mil.

In a statement yesterday, I-Bhd executive chairman Tan Sri Lim Kim Hong said with only 10% of the RM9bil gross development value (GDV) completed to-date, i-City is set to deliver unparalleled growth for I-Bhd over the next 10 years.

He added that while questions might arise on whether sales momentum could be sustained, Lim said the company saw otherwise.

“We have demonstrated that we are still able to sell, reflected by our property sales for the first nine months of 2016 being at the same level compared to the sales for the same period last year despite market conditions being lacklustre.

“What we have promised, we have delivered. i-City two years ago is markedly different to what it is today, and will be different again in two years!”

Lim said I-Bhd had achieved 100% sales for its plot 2 lifestyle oriented series of residential units, which is currently under construction.

He added that the company expected to hand over the keys to owners of its 43-storey i-SOHO (956 units) which is adjacent to i-Suite by year-end.

“Construction remains underway for our themed Liberty Tower (350 units), Parisien Tower (350 units) and Hyde Tower developments (517 units), all due for completion in 2018 and 2019. Response has been overwhelming.”

For the nine-months period ended Sept 30, 2016, I-Bhd’s net profit increased to RM52.48mil from RM27.31mil in the previous corresponding period, while revenue grew to RM280.71mil from RM183.290mil a year earlier.

According to Lim, unbilled sales currently stands at RM656.5mil, which is equivalent to more than two years of property development revenue.

“The unbilled sales were contributed by the encouraging sales of the group’s on-going projects.

“Furthermore as at current financial period Sept 30, 2016, the property development segment has achieved the same level of sales as that for the same period as last year.

“These sales and unbilled sales will ensure that the group has a strong revenue pipeline for the future.”

Barring any unforeseen circumstances, I-Bhd is confident that it would achieve commendable operating results for the current financial year ending Dec 31, 2016.

Lim said the company had also achieved a turnaround with its theme park, which impacted the group performance in the first half of the year.

“Given the historically strong performance of the fourth quarter of the financial year due to the peak period for leisure segment, the group is expected to achieve fair profits for the financial year.

“We expect record profits for this year and given our 30% dividend policy, we will expect record dividends for our shareholders this year as well.”

With zero borrowings and the fluctuation of interest rates, Lim said I-Bhd was in a stronger financial position to increase its landbank or undertake any corporate exercises.