OCR 1Q22 profit after tax rebounds y-o-y, targets 2 vacant possessions in 2022

Target to deliver the vacant possessions of PRIYA Kuantan affordable homes and first industrial park OCR Selayang in 2022

Selangor, Malaysia, 27 May 2022 – Boutique integrated property developer OCR Group Berhad (OCR) reported a significant jump in profit after tax to RM2.5 million in the first quarter ended 31 March 2022 (1Q22) from RM0.1 million the previous corresponding quarter, driven by a rebound in sales and progress billings for ongoing projects, as well as the one-off gains from bargain purchase via the acquisition of OCR Selayang Industrial Park completed in March 2022.

1Q22 revenue improved 10.1% year-on-year to RM24.7 million from RM22.5 million a year ago, mainly derived from its ongoing property development projects namely Isola in KLCC, PRIYA Kuantan affordable homes and The Mate in Damansara Jaya. The Group also recognised revenue for its construction works for YOLO Signature Suites in Bandar Sunway.

Alongside the second consecutive profitable quarter, OCR maintained healthy financial position with net gearing of 0.46 times as at 31 March 2022. This provides the Group with sufficient headroom to tap onto leverage should the need arise.

“The commendable improvement in financial performance reflects OCR’s ability to quickly accelerate construction activities on-site since restrictions were lifted in the fourth quarter of 2021. We intend to ride this positive momentum as we strive to deliver the vacant possessions of PRIYA Kuantan affordable homes and OCR Selayang Industrial Park this year.

Nonetheless we are vigilant of industry challenges, chiefly the sharp rise in costs of raw materials and labour. To mitigate this, we have initiated various steps including proactively managing procurement processes and contractors, and adopting innovative construction technologies in our projects.

Still, we believe that consumer spending will return, and that demand for affordable homes and niche quality products will remain resilient. Hence, we will continue to monitor the overall environment for the appropriate timing to potentially launch new property developments in the second half of 2022.”

Billy Ong Kah Hoe(“王家豪”),
Managing Director of OCR Group Berhad

Compared to the preceding fourth quarter ended 31 December 2021 (4Q21), OCR’s profit after tax improved 318.0% from RM0.6 million, on 68.7% higher revenue from RM14.7 million.