KUALA LUMPUR, May 23 (Reuters) - Malaysia’s IOI Properties Group Bhd on Friday reported a 70 percent on-quarter drop in January-March net profit as new government price-controlling measures hurt domestic sales.
The country’s second-largest real estate developer by market value - reporting earnings for the second time since its Jan. 15 listing - said profit for its fiscal third quarter reached 89.11 million ringgit ($27.74 million).
During the quarter, measures such as an increase in property gains tax came into effect, as the authorities work to slow the rise of property prices and fend off what is widely feared to be the onset of a property bubble.
“The outlook for the property market in both Malaysia and Singapore remains challenging especially in the high-end segment,” IOI Properties said in a statement.
“The mass-market segment in Malaysia, where the group has significant presence, will remain the key revenue driver.”
IOI, controlled by Lee Shin Cheng - Malaysia’s sixth-richest man, according to Forbes - has properties in Malaysia and neighbouring Singapore, as well as in China.
Shares of IOI Properties ended morning trade 0.4 percent higher at 2.61 ringgit before the earnings release, compared with a 0.2 percent decline in the FTSE Bursa Malaysia KLCI Index .
The stock has fallen 17 percent since listing, versus a 2.7 percent gain in the benchmark.
For the full earnings statement, please click: link.reuters.com/ser59v
$1 = 3.2125 Malaysian Ringgit Reporting by Yantoultra Ngui; Editing by Christopher Cushing