Friday, August 27, 2010

BRDB's 2Q net profit doubles to RM84.1m

KUALA LUMPUR: BANDAR RAYA DEVELOPMENTS BHD []'s (BRDB) net profit for the second quarter (2Q) ended June 30, 2010 doubled to RM84.15 million from RM40.61 million a year earlier despite posting a lower revenue of RM151.36 million.

Earnings per share was 17.7 sen, while net assets per share was RM3.59.

For the six months ended June 30, net profit surged to RM106.31 million from RM57.59 million a year ago.

In a filing to Bursa Malaysia on Friday, Aug 27, BRDB said its 2Q revenue declined 35% due to lower revenue from both its property and manufacturing divisions.

Revenue during this quarter under review was mainly derived from progress recognition of CONSTRUCTION [] of CapSquare Office Tower 2 and Troika with fewer property sales in Kuala Lumpur and reduced construction contract revenue from Lahore, Pakistan, it said. ''

BRDB said the lower revenue in the property division was partially mitigated by higher property investment income from Bangsar Shopping Centre (BSC).

Revenue from the manufacturing division under Mieco Chipboard Berhad (MIECO) in this second quarter fell 3% to RM44.6 million from RM46 million a year ago due to lower sales volume of particleboard, although sales of value-added products have improved, it said.

'Despite the lower revenue, the group's pre-tax profit rose to RM94.1 million for the quarter under review, up 86% when compared to RM50.5 million a year ago due mainly to a RM82.7 million gain arising from adjustment to fair value of the BSC based on an independent professional valuation.

'MIECO reported higher pretax profit of RM1 million as compared to RM200,000 a year ago despite lower revenue, as its margins improved and its operational costs decreased,' it said.

On its prospects going forward, BRDB said despite the economic expansion during the first half of this year, the outlook remains challenging with anticipation of a slower global recovery in the second half.

Nevertheless, the company said it was optimistic that the property division will achieve satisfactory results in the current financial year, given the earlier mentioned fair value gain on its investment property.

BRDB said that in August it had offered for sale its latest project in Kuala Lumpur -- 6 CapSquare, which offers freehold luxury condominiums, for which the initial response has been encouraging.

'The manufacturing division has achieved higher margins through value-added products whilst managing costs and productivity.

'In view of strengthening of demand for particleboard, MIECO is preparing to recommence operations at its Kuala Lipis plant as soon as possible,' it said.


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