Hatten Land posts Q4 profit of 9.3m ringgit, reverses year-ago loss

CATALIST-LISTED Hatten Land on Wednesday posted a net profit of RM9.3 million (S$3.07 million) for the fourth quarter ended June 30, reversing a restated net loss of RM5.3 million in the year-ago period.

Revenue rose to RM95.5 million from RM44.7 million a year ago, mainly on higher revenue from the Harbour City project. This was partly offset by lower revenue from the Hatten City Phase 2 project.

Gross profit fell 8.3 per cent year-on-year to RM37 million, which the property developer attributed to the reclassification of certain borrowing costs to finance cost for FY2018.

Earnings per share was 0.68 sen, compared to loss per share of 0.38 sen in Q4 2018.

For the full year, Hatten Land posted a net profit of RM12.3 million, recovering from a restated net loss of RM4.7 million in the previous year.

Profits were lifted by revenue from property development projects and rental income. Revenue rose 22.4 per cent to RM281.4 million, driven by higher contributions from its Harbour City, Satori and Unicity projects. This was partially offset by lower contributions from Hatten City Phase 2.

Earnings per share was 0.90 sen for FY2019, compared to a loss per share of 0.34 sen for the previous year.

Hatten Land declared a dividend of 0.013 Singapore cent for FY2019, down from FY2018's payout of 0.025 Singapore cent. The group said it is conserving cash for development and operations.

"Our financial results this year demonstrates our continued effort in property development business while we strive to pursue alternative and recurring revenue streams which are complementary to our core business," said Colin Tan, executive chairman and managing director of Hatten Land.

"We are confident that Melaka's status as a destination for historical, medical and wellness tourism will continue to underpin demand for our projects."

Hatten shares closed up 0.1 Singapore cent or one per cent to S$0.104 on Thursday.