PETALING JAYA (June 30): OCR Group Bhd posted a revenue of RM28 million for its first quarter ended March 31, 2020 (1QFY20), up 28.5% from the RM21.8 million recorded in the previous corresponding quarter.
However, its net profit for 1QFY20 dropped to RM1.2 million, from RM1.5 million in 1QFY19, due to higher expenses, mainly on increased marketing costs as the group took on more digital marketing for its residential properties, OCR said in a press release.
The improved revenue was mainly attributed to stronger sales and progress billings from the Isola KLCC and PRIYA Scheme Kuantan developments, and initial contribution from the group’s recently soft-launched development, The Mate in Damansara Jaya. OCR also saw higher contributions from construction works for YOLO Signature Suites in 1QFY20.
“Despite the movement control order temporarily halting 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,” said OCR managing director Billy Ong Kah Hoe.
“Having resumed our operations in June, we are working hard and are ramping up the construction of our property development projects to meet the stipulated deadlines.
“With the recent economic stimulus packages 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,” said Ong.
OCR has unbilled sales and overbook of RM226.5 million and RM127 million respectively, which it said will provide solid earnings visibility for the next three years.