KUCHING: Sentoria Group Bhd (Sentoria) is not expecting any sizeable new ventures or acquisitions over the medium term as it has plateful of projects across four key regions in Malaysia which will last the group for another 10 to 12 years.
Analysts at TA Securities Holdings Bhd (TA Research) said over the next three years, project execution and brandbuilding remains Sentoria’s key focus with an outstanding gross development value of RM9.8 billion.
RM746 million worth of new launches will be rolled out from the third quarter of financial year 2015 (3QFY15) onwards, it said, including the maiden launch of Borneo Samariang Resort City in Kuching with a GDV of RM404 million.
“For the full-year of FY15, management is targeting a net profit growth of 20 per cent year on year, which we think is attainable, driven by progressive recognition of property development and better performance at its leisure and hospitality division,” TA Research said in a note yesterday.
“Sentoria reported 1HFY15 net profit of RM14.5 millionn, which came in at 39 per cent of our full-year earnings forecast.
“However, we deem the results in line as 2HFY15 should see stronger progress billing from its on-going projects in Kuantan and seasonally high theme park and resorts revenue in 2H in conjunction with festivals and school holidays.”
Net profit for the first half of financial year 2015 (1HFY15) surged 33 per cent y-o-y to RM14.5 million, driven by revenue growth of 18 per cent and pretax margin expansion of 6.1 percentage points on better product mix.
“The property division reported revenue and earnings before interest and tax of RM84.3 million and RM26.1 million respectively, mainly due to swift construction progress of its townships in Kuantan.
“Meanwhile, the leisure and hospitality division achieved break-even, compared to losses of RM4.1 million for the same reporting period last year,” it highlighted.
“On a quarterly basis, the group’s 2QFY15 revenue and net profit plummeted 20 per cent and 71 per cent to RM51.4 million and RM3.3 million respectively. The decline in sequential performance was largely due to weaker performance across the board.
“Property development division’s EBIT down 27 per cent quarter on quarter, affected by shorter working days in conjunction with Chinese New Year break. Meanwhile, the leisure and hospitality division dipped into red due to seasonally low hotel occupancy and visitor arrivals in 2Q.”