PETALING JAYA: JKG Land Bhd is expecting the country’s economic recovery to continue in 2022 and 2023, helped by progressive opening of economic sectors, although the property developer remains cautious about its business prospects due to global supply chain shocks, compounded by rising input costs.

       “The overall optimistic outlook is hampered by the Ukraine-Russia conflict which hinders global growth and is creating supply shock to economic recovery,” said JKG Land in a filing with Bursa Malaysia.

       Still, the group said it is well positioned to take on the challenges and participate in the recovery of the property sector, with an established track record for its projects.

       For its fourth quarter ended January 31, 2022 (4Q’22) net profit jumped 58.5% to RM14.8mil while revenue was 45.6% higher year-on-year to RM89.7mil.

       JKG Land said the better performance for 4Q’22 was mainly due to higher progress of construction works from its ongoing development projects in Phase 3A and Phase 3B of Taman Puteri and Taman Desa Cinta Sayang in Kedah and its high rise mixed development project, namely Phase 1 of The Era@ Duta North in Kuala Lumpur, which was completed towards the end of FY22.

       For the full financial year (FY22), net profit jumped 12.5% to RM24.8mil while revenue was marginally 1.3% lower year-on-year to RM184.8mil.

       The improved net profit in FY22 was mainly attributed by the improvement in the property development segment and cultivation of oil palm segment.

       It is worth noting that 98% of the group’s FY22 revenue is from property development.

       JKG Land noted that for FY22, its oil palm cultivation unit saw revenue increased 75.4% year-on-year, and operating profit improved to RM1.08mil due to stronger crude palm oil prices and better fresh fruit bunch harvesting.