KUALA LUMPUR (Jan 29): GuocoLand (Malaysia) Bhd, the Malaysian property development arm of the Hong Leong Group, reported a 9.5% decline in net profit to RM6.67 million for the second quarter ended Dec 31, 2025 (2QFY2026), even as quarterly revenue climbed to its strongest level in more than three years.
The group attributed the softer earnings primarily to the absence of profit contribution from Emerald Hills’ North Tower, following the handover of vacant possession in December 2024, as well as a lower share of profit from Emerald Rawang, according to a filing with Bursa Malaysia.
Despite the dip in profit, quarterly revenue rose 4.6% year-on-year to RM150.82 million, compared with RM144.15 million previously. This marked GuocoLand’s highest quarterly revenue since 4QFY2022, underscoring resilient demand across its diversified property portfolio.
The stronger top-line performance was driven mainly by continued healthy sales momentum at the Emerald 9 residential projects in Cheras, alongside higher occupancy levels at Menara HLX, an investment office asset held under Tower REIT. The improved performance of Menara HLX highlights ongoing demand for commercial property in KL, particularly well-located office buildings with stable tenancy.
In addition, the group’s hotel segment recorded improved results, supported by higher average room rates and stronger food and beverage revenue, further lifting overall earnings. No dividend was declared for the quarter.
For the first half of FY2026, GuocoLand delivered a stronger performance, with net profit rising 24.3% to RM12.77 million, while half-year revenue increased 28.1% to RM273.53 million, reflecting improved contributions across development, investment, and hospitality segments.
Looking ahead, GuocoLand expects the Malaysian property market to experience steady but moderate growth in 2026, supported by stable financial policies and a gradually improving economic environment. The group said it will remain focused on clearing completed property inventories to strengthen cash flow and facilitate capital recycling into future projects.
The company also noted that its industrial development in Jasin is currently undergoing regulatory review and approval, reflecting continued interest in industrial land in Selangor and surrounding growth corridors, where demand for factories, logistics hubs, and light industrial facilities remains active.
GuocoLand remains optimistic about the outlook for its property investment and hotel divisions, particularly as demand for office space in Bukit Jalil, established commercial zones, and emerging business districts continues to support occupancy and rental performance. This trend also complements broader market activity in industrial property in the Subang area and factory developments in Puchong, where mixed-use and industrial ecosystems are gaining traction.
According to market data from AskEdge, GuocoLand currently records a trailing 12-month EBITDA margin of 14.5% and a return on equity of 1.6%.
GuocoLand shares closed 0.5 sen higher, or up 0.6%, at 84 sen on Wednesday, giving the group a market capitalisation of approximately RM588 million. The stock has gained about 40% year-to-date, reflecting improved investor sentiment.
Malaysia