MCT 4Q profit up 38%, FY17 profit dips 18%

KUALA LUMPUR (Aug 26): MCT Bhd posted a 38.44% increase in its net profit for its final quarter of the financial year ended June 30, 2017 (4QFY17) to RM18.10 million, from RM13.07 million a year ago.

In a filing with Bursa Malaysia yesterday, the property development and construction company said quarterly revenue was also up by 20.66% at RM192.65 million from RM159.67 million.

However, MCT wrapped up the financial year with a total of RM63.66 million in net profit, a 17.72% decrease from the RM77.37 million registered in FY16.

Its full-year revenue also came in 4.88% lower at RM622.97 million, compared with RM654.91 million in the prior financial year.

For the quarter under review, MCT said that the higher revenue on a year-on-year basis was mainly due to movements in completion rates in both its Skypark @ Cyberjaya project, and its nearly sold-out Lakefront Villa units.

The group attributed its project mix as the driver of the increase in its final quarter profit, as gross profit margin stayed relatively flat at 40%, compared with 39% last year.

As for the 12-month period, MCT noted that the property development segment remained a strong financial driver, with 93% revenue contribution for the year under review.

Total operating and administrative costs lowered by 7% in FY17.

However, there was an impairment of RM13.60 million in chiller plants at two of its projects, The Place @ One City and The Place @ Cyberjaya, recorded in the quarter.

On prospects, MCT said that it is cautiously optimistic with the market upswing of the property sector, since the group's landbank and existing projects are located in areas where property values are expected to appreciate, namely Subang Jaya, Cyberjaya, and Dengkil.

"Several projects are for handover to buyers by FY18. The property development segment looks forward to planning future phases of existing projects as well as scouting for opportunities to develop and expand existing landbank in anticipation of market upswing," it said.

Shares of MCT closed two sen or 2.22% higher today at 92 sen, giving it a market capitalisation of RM1.23 billion. — theedgemarkets.com

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