REVIEW OF PERFORMANCE (extract from its quarterly announcement)
For the current quarter, the Group recorded a revenue of RM82.8 million, and profit before tax of RM11.8 million, compared to a revenue of RM21.7 million and a loss before tax of RM20.9 million for the preceding year corresponding quarter. The better performance over the preceding year corresponding quarter’s was mainly attributable to contributions from sale of land as well as higher construction progress achieved across all our development projects in Seri Kembangan. The Group recorded revenue and profit before tax of RM82.8 million and RM11.8 million respectively as compared to RM58.3 million and RM4.6 million respectively in the immediate preceding quarter. The increase in revenue was mainly contributed by revenue from sale of land and higher progressive recognition from residential development projects in Seri Kembangan. The improved profit before tax was mainly attributable to higher profit contribution from our development projects in Seri Kembangan and also a gain from sale of land.
COMMENTARY ON PROSPECTS
Bank Negara Malaysia reported that Malaysian economy grew 4.5% in the fourth quarter of 2016, compared with 4.3% in third quarter of 2016, underpinned by continued expansion in private sector expenditure. For the whole of 2016, GDP grew at a slower pace of 4.2% compared to 5% in 2015.
In view of prevailing weak sentiment in property demand and cautious consumer spending, the Group will continue to launch new projects and also manage current business operations prudently
Don't worry 0.38 cents is a very strong support and it should hold after that it may consolidate to build strength to take down previous high at 0.44 cents. My 2 cents ...Cheer!
Well said...GOB is riding on the current bull market surrounding properties sector. But then, what is fundamentally so good about GOB ? Absolutely nothing. Incompetent management! What a stupid way to do business ? Raised rights issue and then venture into loss making F&B business. Destroy shareholders wealth. And then, sell off half of Batu Kawan land at pittance on the dollar.
If you wanna make a quick buck buying and selling, then GOB can deliver within this window period. But then, if you wanna hold long term, might as well forget it!
Sales of land by 49% Associated Penaga Pesona will net a gain of RM105 millions, 49% for GOB would be RM51.5millions
Increased in Market value of the land over book value of the remaining land estimated in excess of RM230million (Eco deal for HS (D) 45956 is selling at RM45 per square ft, assuming the other land under HS (D) 45951-45953 at RM30 per square ft).
Total gain for GOB would be RM169M.. RM51.59M in profit upon completion of the land sales, the SPA has been extended to 31st May 2017 pendig approval of the authorities and estimated RM117M in land value appreciation.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
klsefighter
328 posts
Posted by klsefighter > 2017-02-21 15:30 | Report Abuse
How about the sale of Galleria 2 .... Is it good or bad response ???