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- Earnings per share for the first quarter ended Sept 30, 2025 (1QFY2026) improved to 0.91 sen from 0.43 sen.
KUALA LUMPUR (Nov 13): GuocoLand (Malaysia) Bhd (KL:GUOCO), the property arm of Hong Leong Group, said its first quarter net profit more than doubled to RM6.1 million from RM2.91 million a year earlier on stronger contributions from its property and hotel divisions.
Earnings per share for the first quarter ended Sept 30, 2025 (1QFY2026) improved to 0.91 sen from 0.43 sen, according to the group's Bursa Malaysia filing on Thursday.
Revenue rose 76.8% year-on-year to RM122.72 million from RM69.41 million, mainly driven by robust sales and progressive construction billings from the Emerald 9 project in Cheras, higher crude palm oil prices in the plantation segment and improved hotel performance with a 13% increase in average room rates.
Operating margin rose to 13.3% from 12.4% while gross margin narrowed to 24.3% from 40.8%, reflecting a higher cost base. Finance costs fell 26.8% to RM6.15 million from RM8.41 million, contributing to the earnings improvement.
There was no interim dividend declared for the quarter.
Segmentally, the property development division remained the main contributor, posting RM9.24 million in operating profit. The hotel division turned in RM815,000 in profit while plantation earnings rose to RM2.18 million. The property investment arm reported RM6.74 million in profit.
Looking ahead, GuocoLand said it remains focused on timely delivery of ongoing projects, inventory sales and cost discipline.
"In managing rising development costs, the group is enhancing project efficiency through disciplined cost management, value engineering and process improvements," it said.
The group is also exploring prime residential launches and progressing with plans to diversify into industrial development to capture long-term growth prospects while continuing sourcing for new land banks for future development.
GuocoLand shares closed unchanged at 58.5 sen on Thursday, with a market capitalisation of RM409.77 million. The counter has fallen by more than 11% year to date.
As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.
