Jump in i-Bhd’s net profit

PETALING JAYA: I-Bhd’s net profit for its fourth quarter ended Dec 31, 2013 surged over 200% to RM29.58mil from RM9.08mil in the previous corresponding period, mainly due to higher profit from ongoing projects in its property development division, as well as fair value gains of RM13mil arising from the revaluation of investment properties held by the group.

Revenue increased to RM55.66mil from RM30.74mil previously.

For the financial year ended Dec 31, 2013 (FY13), meanwhile, net profit rose to RM43.97mil from RM16.82mil in FY12, while revenue jumped to RM152.15mil from RM66.66mil previously.

The company said in a statement yesterday that the revenue increase was mainly due to higher sales from ongoing projects as well as growth in the leisure division.

In the same statement, deputy chairman Datuk Eu Hong Chew said i-Bhd’s property development segment

emerged as its biggest contributor, with 62.4% of total revenue.

“The growth of the property development segment is the result of various projects in i-City coming on-stream. In 2012, we launched about RM300mil in gross development value (GDV) worth of projects, while in 2013, the launched GDV was in excess of RM1bil.”

I-Bhd’s ongoing projects are its i-Residence and i-SOVO projects which have been fully sold, as well as its i-SOHO development which was launched in the fourth quarter of 2013. All these developments were located within the vicinity of the i-City ultrapolis in Shah Alam, said the company.

The leisure business division registered a significant 47.3% growth in revenue in FY13.

“Part of this growth came from new attractions such as the Red Carpet@i-City interactive wax museum and House of Horror@i-City that were rolled out in the second half of 2013, while the balance came from increased revenue from existing attractions,” added i-Bhd.

On plans for 2015, Eu said that with RM400mil of unbilled sales as at the end of 2013 and RM1.6bil of launches for 2014, i-Bhd was on target to generate annual revenues of RM500mil for its property development sector over the next two to three years.

“At the same time, there is still another RM4.5bil of development to be launched from the balance of land in i-City,” he said.

“All-in, our balance sheet shows that the group still maintains low gearing, and when our ongoing corporate exercise is completed in the third quarter of 2014, the group will continue to build on its strong financials as it builds up its property investment assets,” said Eu.

I-Bhd’s board has proposed a final single-tier dividend of six sen per share, to be approved at the company’s forthcoming AGM. If approved, the dividend payout will amount to RM6.9mil, or 13% of its FY13 net profit.

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