KUALA LUMPUR: KLCCP Stapled Group Bhd is projected to see continued earnings growth in the next quarter, driven by stable office occupancy, reliable management services, good retail performance, and robust hotel results, according to Hong Leong Investment Bank Bhd (HLIB Research).
For the second quarter of 2024 (Q2 2024), KLCCP posted a 4.7 per cent growth in revenue to RM413.2 million, driven by its retail and hotel segments. The results reflect the acquisition of the remaining 40 per cent stake in Suria KLCC.
Its net profit rose by 1.6 per cent quarter on quarter to RM191.1 million, which brought the first half of 2024 sum to RM379.1 million.
"We deem the results within our (49 per cent) and street (47 per cent) estimates," HLIB Research said in a note.
HLIB Research has maintained a 'hold' call on KLCCP with a target price of RM7.50.
It said that year-on-year, KLCCP's revenue increased by 4.7 per cent due to improvements across the board, while retail saw higher occupancy, footfall growth, and tenant sales.
"Hotel enjoyed higher room occupancy, while management services benefited from higher car park income from additional parking bays. Consequently, core net profit improved by 5.7 per cent," it added.
The investment bank said despite Q2 typically being a slower quarter for KLCCP, the group managed to record another commendable set of results, as the retail and hotel segments remained robust.
"The acquisition of the 40 per cent stake in Suria KLCC was also completed in this quarter. Looking ahead, subsequent quarter earnings should continue to be sustained," it added.