KUALA LUMPUR (May 30): Keck Seng (M) Bhd’s net loss for the first quarter ended March 31, 2017 (1QFY17) narrowed by 81.6% to RM6.11 million, from RM33.22 million a year earlier, on higher revenue and forex gains.

Revenue for the quarter rose 40.03% to RM306.99 million, from RM219.23 million in 3QFY16, as the group’s manufacturing segment recorded higher selling prices and quantities of refined palm oil, Keck Seng said in a filing with Bursa Malaysia today.

Going forward, Keck Seng expects production of fresh fruit bunches (FFB) in 2017 to  be marginally higher than the previous year.

“The higher rainfall and the expected arrival of additional workers to ease the shortage of workers, should help increase production,” the filing said.

Meanwhile, the group expects the property market to remain challenging, even as it prepares to launch new phases of single and double storey terrace houses in Bandar Baru Kangkar Pulai and double storey shop offices, cluster and semi-detached industrial units in Tanjong Puteri Resort, both in Johor, in the second half year of 2017.

The division would also continue to market and sell completed units, such as its Johor affordable (RMMJ) houses and three storey shop office in Taman Daya, Keck Seng said.

As for the hotels and resorts division, the group remains cautiously optimistic that the performance of its International Plaza Hotel in Toronto would improve as the Canadian dollar depreciates.

As it undergoes renovations to be rebranded as the “Delta Hotels by Marriott Toronto Airport” in mid-2017, the group said it expects to capitalize on the additional contribution from Marriott’s central reservation system, its loyalty programme and its various sale initiatives.

Keck Seng also expects the Doubletree Alana Waikiki Hotel in Hawaii to maintain high occupancies and room rates in 2017. However, the New York market is seen to remain competitive, with average room rates under continued pressure, as hotels vie for increased market share.

In Malaysia, the first quarter results of Tanjong Puteri Golf Resort in Johor was challenged by increased competition from golf clubs slashing rates, higher operating costs in the area of labour and minimum wages, land assessments, and increases in toll charges and vehicle entry permit for Singaporean cars, Keck Seng said.

Shares in the group were up 4 sen or 0.8% at RM5.02 as at market close today. The group had a market capitalisation of RM1.8 billion.