- Posted RM1.2 million net profit
- Unbilled sales and order book of RM353.5 million to provide earnings visibility over next three years
Selangor, Malaysia, 29 June 2020 – Boutique integrated property developer OCR Group Berhad (OCR, Bloomberg: ONC:MK; Reuters: OCRG.KL) saw its first quarter ended 31 March 2020 (1Q20) revenue improve 28.5% to RM28.0 million from RM21.8 million in the previous corresponding quarter.
The improved topline was mainly attributed by stronger sales and progress billings from Isola KLCC and PRIYA Scheme Kuantan developments, and initial contribution from the Group’s recently soft-launched development The Mate at Damansara Jaya. The Group also recorded higher contributions from construction works for YOLO Signature Suites during 1Q20.
However, the Group’s 1Q20 net profit declined to RM1.2 million from RM1.5 million as compared to 1Q19 due to higher expenses, mainly on increased marketing costs as the Group pushed for more digital marketing efforts for its residential properties.
The Group’s unbilled sales and orderbook stood at RM226.5 million and RM127.0 million respectively, which will provide solid earnings visibility for the next three years.
“ Despite the Movement Control Order temporarily halted the construction progress of our projects, we have restrategised and introduced various measures in managing our cash flow and operational risk. This includes initiatives on off-site/virtual marketing, funding realignment and site planning optimisation.
Having recently resumed our operations in June, we are working hard and are ramping up the construction of our property developments projects to meet the stipulated deadlines.
With recent economic stimulus packages being introduced by the government, we are optimistic that the consumer confidence and market sentiment will gradually improve over time. The resumption of the Home Ownership Campaign, removal of the Real Property Gains Tax as well as the upliftment of the 70% margin of finance limit for third property buyers, are likely to spur interest of owning homes in Malaysia.”
Billy Ong Kah Hoe(“王家豪”),
Managing Director of OCR Group Berhad