KUALA LUMPUR, Nov 24 — IOI Properties Group Bhd’s net profit for the first quarter ended September 30, 2023 (1Q FY2024) slipped to RM174.44 million versus RM640.28 million registered in the same period a year ago, largely due to the weaker contribution from the property development segment.

Revenue also decreased by six per cent to RM648.04 million from RM691.52 million previously.

In a filing with Bursa Malaysia today, the property developer said the property development segment recorded revenue and operating profit of RM451.4 million and RM101.3 million respectively in the current year quarter, which is 15 per cent and 39 per cent lower than the preceding year corresponding quarter, respectively.

It said the lower financial performance in the current quarter is primarily attributed to reduced sales contribution from both Malaysia and China’s operations influenced by an interest rate hike in Malaysian operations and a cautious market outlook, prompting prospective purchasers in China to exercise prudence in their buying decisions.

Nevertheless, it said the significant improvement of the property investment segment partially offsets the weaker performance of the property development segment.

For 1Q FY2024, the property development segment achieved sales of RM587 million.

Local projects contributed RM572.6 million, which is 98 per cent of the total sales, while overseas projects in China contributed RM14.4 million, or the remaining two per cent.

On prospects, IOI Properties said its operating environment, both within and outside Malaysia, would continue to face some headwinds.

Moving forward, it said IOI Properties’ wide product offerings diversified across three countries, recurring earnings from established property investment portfolios and improving prospects for the hospitality and leisure segment would provide the company with a strong foundation for sustained earnings ahead. — Bernama