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I-Bhd executive chairman Tan Sri Lim Kim Hong

I-Bhd Q2 earnings up 72% to RM14.6m, boost from i-City

Wednesday, 20 July 2016

I-Bhd executive chairman Tan Sri Lim Kim Hong
I-Bhd executive chairman Tan Sri Lim Kim Hong

KUALA LUMPUR: I-Bhd posted earnings of RM14.68mil in the second quarter ended June 30, 2016, underpinned by its property development from the various projects in its i-City.

It said on Wednesday the Q2, 2016 earnings were up 72.3% from the RM8.52mil a year ago. Earnings per share were 1.38 sen compared with 0.8 sen. Its revenue increased by 64.4% to RM86.67mil from RM52.72mil.

Property development segment recorded higher sales and completion of construction from the various projects in i-City.

It said for the first half ended June 30, 2016, its earnings rose 60.1% to RM30.04mil from RM18.75mil in the previous corresponding period. Revenue increased 30.5% to RM167.12mil compared with RM128.07mil.

I-Bhd executive chairman Tan Sri Lim Kim Hong said sales and occupancy in i-City were very encouraging, as its property sales for the first half of 2016 was 57% higher compared to the sales for the same period last year.

“We have achieved 80% sales for our plot 2 lifestyle oriented series of residential units that is currently under construction. Moreover, we expect to handover the keys to owners of our 43-storey i-SOHO (956 units) which is adjacent to i-Suite this year-end,” he said. 

Lim added construction was under way for both its New York ID-themed Liberty Tower (350 units) and Paris ID-themed Parisien Tower (350 units) which are due for completion in the fourth quarter of 2018.

“We have been receiving overwhelming response for our London ID-themed 43-storey Hyde Tower (517 units ranging from 465 to 769 sq ft).”

“With only 10% of the RM9biln GDV completed to-date, i-City is set to deliver unparalleled growth for I-Bhd over the next 10 years, he said, pointing out the growth in the GDV of      i-City as well as the unbilled sales.

When i-City first started, it was a project with a RM1.5 billion GDV. However over the past 10 years, the group has managed to transform it into a RM9bil GDV development.

Lim said I-Bhd had also been able to build up the unbilled sales from RM386mil at the start of 2014 to RM718.6mil  now.

“All these unbilled sales will translate into higher revenue and ultimately profits for the Group in the coming years,” he said.

Lim said to maintain the development pipeline, I-Bhd has two more “exquisitely planned out” developments at i-City in the coming year. 

They are the “Residences Above DoubleTree by Hilton”, which features a mixed development consisting of residential suites (ranging from 465 sq ft to 769 sq ft) and a four-star international hotel with a total gross floor area of 380,000 sq ft.

The Central Tower project features a mixed development consisting residential suite towers, a hotel tower and an office tower with a total gross floor area of 1.6 million sq ft

Lim said these two projects would be complemented by i-City’s landmark Central Shopping Mall i-City project.  This project is a joint venture between Bangkok-based Central Pattana Public Co Ltd (which has a 60% stake while I-Bhd hold remaining stake).

He emphaises the RM850mil shopping mall was in line with I-Bhd’s business strategy of expanding its leisure and investment property businesses. Hence, when i-City is fully developed over the next 10 years, the group would be able to enjoy a strong recurring income stream from these two segments.”

The group’s current performance is driven mainly by i-City as the contribution from the 8Kia Peng@KLCC development will only be significant from next year.  

“Given our track record, we expect the success of i-City will be replicated in 8Kia Peng@KLCC,” he added.

Lim also stressed I-Bhd had zero gearing, reflecting its strong financial position.

“The fact that we are not subject to bank borrowings and the fluctuation of interest rates will mean that we are in a stronger financial position to increase our landbank,” he said.

Source by: The Star Online

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