GuocoLand’s 1Q Net Profit More Than Doubles on Strong Property and Hotel Performance

KUALA LUMPUR (Nov 13): GuocoLand (Malaysia) Bhd (KL:GUOCO), the property arm of the Hong Leong Group, posted a significant jump in net profit for its first quarter ended Sept 30, 2025 (1QFY2026), with earnings rising to RM6.1 million from RM2.91 million a year ago.

Earnings per share grew to 0.91 sen, nearly doubling from 0.43 sen previously.

The improved results were driven by stronger contributions from its property development, hotel, plantation, and investment divisions, underscoring the group’s stable footing in a competitive commercial property in KL environment.

Revenue Jumps 76.8% on Stronger Sales and Project Progress

GuocoLand’s quarterly revenue surged 76.8% year-on-year to RM122.72 million from RM69.41 million. Growth was led by:

• Robust sales and progressive billings from Emerald 9 in Cheras

• Higher crude palm oil prices boosting plantation earnings

• Improved hotel performance, including a 13% rise in average room rates

Operating margin improved to 13.3% from 12.4%, although gross margin eased to 24.3% on a higher development cost base. Finance costs dropped 26.8% to RM6.15 million, supporting better bottom-line performance.

No interim dividend was declared for the quarter.

Segment Performance

• Property development remained the largest earnings contributor with RM9.24 million in operating profit

• Hotel operations delivered RM815,000 in profit as tourism and business travel continued to recover

• Plantation division earnings rose to RM2.18 million

• Property investment posted RM6.74 million in operating profit, reflecting steady income from its investment assets

The group’s exposure to multiple segments enables it to navigate market cycles more effectively, particularly in urban corridors where demand for office space in Bukit Jalil, industrial land in Selangor, and factory in Puchong continues to build near major employment hubs.

Outlook: Efficiency, New Launches and Industrial Expansion

GuocoLand said it remains focused on timely delivery of its ongoing developments, managing inventory, and strengthening cost discipline amid rising development expenses.

The group noted that it is:

• Enhancing project efficiency through value engineering

• Exploring new prime residential launches in the Klang Valley

• Progressing plans to diversify into industrial development, including potential opportunities involving industrial property in the Subang area

• Continuing to identify and acquire new land banks for sustainable future growth

The strategic pivot into the industrial segment is aligned with broader market demand, as Greater Kuala Lumpur continues to attract logistics, warehousing, and data-centre investment—particularly near Selangor’s established industrial zones.

GuocoLand’s share price closed unchanged at 58.5 sen on Thursday, valuing the company at RM409.77 million. Year to date, the counter has declined more than 11%.