Naim 2Q14 net profit soars 217 per cent

KUCHING: Naim Holdings Bhd’s (Naim) net profit for the second quarter of 2014 (2Q14) soared 217 per cent year-on-year (y-o-y) to RM28.76 million compared with RM9.08 million in 2Q13.

The company in a filing to Bursa Malaysia yesterday said it earnings for the first half of 2014 (1H14) also jumped 148 per cent y-o-y to RM124.58 million against RM50.24 million in 2Q13. However, Naim said its 2Q14 revenue decreased 14 per cent y-o-y to RM158.11 million while turnover for 1H14 dipped 0.5 per cent to RM312.16 million.

In its notes accompanying the results, the property developer said sales for its property division continued to be sustained by its township development in Miri which registered strong take-up rates.

Nonetheless, Naim expects slower take-up rates for its newly launched products comprising high rise condominium and high end commercial units in Kuching and Bintulu.

Additionally, the group has put in place strategies such as aggressive marketing, competitive pricing and attractive product packages to improve the take-up rates.

With the demand from the Sarawak Corridor of Renewable Energy (SCORE) projects, Naim believes continued growth in the current property market in Sarawak will help to sustain demand for its properties.

Naim’s construction segment recorded higher revenue of RM164.3 million in 2Q14 compared with RM143.1 million in 2Q13.

The higher revenue was due to higher progress of construction works from existing projects, especially contracts secured in 2013.

Going forward, Naim remains cautious on the outlook of the property market in Sarawak given the mixed outlook for the year ahead.

“Product planning and pricing as well as tightening of cost control strategies are amongst key measures to be implemented to sustain performance for its property segment,” it said.

Looking ahead, Naim said a number of sizeable construction tenders has been submitted.

The company is cautiously optimistic to secure some of the contracts to replenish its order book which stood at more than RM1 billion currently.

SOURCE: Borneo Post Online, 22 August 2014