AME Elite 2Q net profit doubles on new industrial space boost

KUALA LUMPUR (Nov 27): Integrated industrial space solutions provider AME Elite Consortium Bhd's net profit for the second quarter ended Sept 30, 2019 doubled to RM20.98 million from RM10.01 million a year earlier, partly due to some new construction projects with higher profit margin.

Quarterly revenue, however, fell 23% to RM81.81 million from RM106.28 million previously, the group's filing with Bursa Malaysia showed.

Earnings per share for the quarter jumped to 6.14 sen from 2.93 sen earlier.

For the cumulative six months ended Sept 30, AME's net profit surged to RM34.12 million from RM16.71 million in the year-ago period. Revenue for the period rose to RM176.17 million from RM164.96 million previously.

In a separate statement, AME group managing director Kelvin Lee Chai said the group's i-Parks are shaping up to be the nucleus that attracts investments from expansion-driven multinational corporations and domestic enterprises.

"AME's reputation for developing well-managed industrial parks has evidently served us well in boosting demand.

"Phase 3 of i-Park @ Indahpura is 66% sold and leased as at Sept 30, 2019, leveraging the near-completion of Phases 1 and 2. Similarly, the strong sales of the commercial shop lots in i-Park @ Senai Airport City with 79% take-up rate following the success of Phases 1 and 2.

"Buoyed by this positive reception, we expect to commence development of Phase 3 of i-Park @ Senai Airport City by the fourth quarter of the financial year ending March 31, 2020. The 76.6-acre land increases i-Park @ Senai Airport City's total acreage to nearly 190 acres, and potentially adds RM555 million GDV (gross development value) to bring the industrial park's total GDV to approximately RM1.3 billion," he said.

Kelvin said that moving forward, with heightened demand and enquiries at the group's i-Park industrial parks, he is optimistic on maintaining AME's growth momentum for the rest of the current financial year.

"Furthermore, the government's plans to incentivise more FDI (foreign direct investment) into the country bodes well for our prospects and justifies our expansion plans towards meeting impending demand," he said.

At the midday break today, AME shares gained 0.52% or 1 sen to RM1.95 with 1.56 million shares traded.

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