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KUALA LUMPUR (Jan 29): GuocoLand (Malaysia) Bhd (KL:GUOCO), the property arm of Hong Leong Group, said its net profit fell 9.48% to RM6.67 million in the second quarter ended Dec 31, 2025 (2QFY2026) from RM7.36 million a year earlier, despite revenue climbing to a more than three-year high.
The lower profit was due to the absence of profit contribution from Emerald Hills' North Tower following its delivery of vacant possession in December 2024 and lower share of profit from Emerald Rawang, the group said in a bourse filing on Wednesday.
Quarterly revenue increased 4.62% to RM150.82 million, from RM144.15 million. This is its highest revenue since 4QFY2022, when the group reported a quarterly revenue of RM172.08 million.
The higher revenue was mainly driven by the Emerald 9 projects in Cheras, which continued to register robust sales, as well as higher occupancy rate at Menara HLX, an investment property held by Tower REIT.
Improved performance in the hotel division, underpinned by higher average room rates and stronger food and beverage revenue, also contributed to the higher revenue, the group said.
There was no dividend declared for the quarter.
For the first half of FY2026, GuocoLand's net profit rose 24.27% to RM12.77 million, from RM10.27 million in the previous corresponding period. Half-year revenue grew 28.08% to RM273.53 million from RM213.56 million.
GuocoLand said the Malaysian property market is expected to register positive but moderate growth in 2026, supported by a stable financial policy and improved economic outlook.
The group said its efforts will continue to be directed towards the disposal of completed inventories to enhance cash flow and enable capital redeployment into future developments.
It noted that the development of the industrial project in Jasin is undergoing regulatory review and approval process.
As for the hotel and property investment segments, GuocoLand is optimistic that the improved revenue contributions from these segments will continue.
According to AskEdge, GuocoLand shows trailing 12-month earnings before interest tax depreciation and amortisation margins of 14.5%, coupled with a 1.6% return on equity.
GuocoLand shares closed half a sen or 0.6% higher at 84 sen on Wednesday, bringing the group a market capitalisation of RM588 million. The counter has surged 40% or 24 sen since the beginning of the year.
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