YTL Corporation Bhd anticipates a modest recovery in the property sector, owing to the acceleration of the national vaccination programme and the gradual reopening of the local economy.
The group said in a stock exchange filing today that it will continue to invest in marketing and initiatives to increase sales and launch new projects.
YTL said that the short-term outlook for the hospitality industry remains challenging.
"Demand from international business and leisure travellers is expected to remain subdued until the Covid-19 pandemic is contained, after which, management expects pent-up demand to fuel recovery," it said.
The lifting of interstate and international travel restrictions, as well as the relaxation of quarantine measures, is expected to revitalise tourism, hospitality, and the retail industry, resulting in positive economic outcomes and bodes well for business, it said.
YTL increased its pre-tax profit by 215 percent in the first quarter ended September 30, 2021 (Q1 2022), owing to strong performance from its key operating subsidiaries in Malaysia and abroad.
In the quarter under review, the conglomerate earned a pre-tax profit of RM325.4 million, up from RM103.4 million in the previous quarter ended June 30, 2021 (Q4 2021).
Revenue increased 18 per cent in Q1 2022 to RM5.064 billion, up from RM4.28 billion in Q4 2021.
Tan Sri (Sir) Francis Yeoh Sock Ping, executive chairman of YTL, said in a statement that the group had a strong start to the fiscal year 2022, with revenue increasing 18 per cent to nearly RM5.1 billion in the first quarter.
"Improved operational performance across almost all divisions drove revenue and profits," he said.
Construction; property investment and development; information technology and e-commerce; cement and building materials; utilities; hotel operations; and management services are the group's seven reportable segments.
Despite the various MCOs, international border closures, and interstate travel bans, the property investment and development segment, held by YTL Land & Development, reported a revenue of RM510.6 million for Q1 2022, while the hotel segment, operated by YTL Hotels, reported a profit of RM149.7 million.
YTL Land & Development has built up an excellent track record of building high quality houses, apartments and condominiums with attractive and innovative designs such as Sentul East, Sentul West, and The Peak.
According to its website, it currently has a land bank of more than 2,000 acres, with an estimated sales value of RM12 billion.
The significant increase in revenue for the segment for Q1 2022 was primarily due to the sale of lands by Satria Sewira Sdn Bhd and Emerald Hectares Sd Bhd.
The improved performance of The Gainsborough Bath Spa, Niseko Village K.K., and Thermae Development Company Ltd, as a result of the relaxation of movement control orders in the United Kingdom, was primarily responsible for the increase in revenue for the hotel business.
For the quarter under review, the property investment and development segment earned RM317.9 million in profit from operations; however, the hotel segment lost RM4.84 million in profit from operations.