Certainly a tricky on to analyse this year with GP Margins...

Certainly a tricky on to analyse this year with GP Margins coming in at:

• Q1 - 29.7%
• Q2 - 55.2% &
• Q3 - 36.6%

Average TYD of 42.4% is still pretty strong.

The coverpage of the report showing the next launch at Bangsar South is interesting, the Southlink development has been their fastest selling development this year, I understand it speaks for around half of the RM1.14B of YTD sales. Primarily because they're holding back the last part of the United Point and Sentul Point developments for higher margin post-completion sales in these developments.

The Southlink is primarily smaller apartments aimed at young, professional couples. I understand the Goodwood will be larger apartments targeting families.

In any case, the known unknown for this year is how the property revaluation process will impact the final profit number. I can't see how Vertical Tower A, which is carried at a valuation of about RM8,000sqm doesn't get revalued to at least RM10,000sqm (which would still be below peer valuations). That one change alone would be worth more than RM135M, ignoring the dated valuations for the Vertical Hotel & Podium & The Sphere and Nexus, which are now all operating at close to full maturity - Eternalgrowth