NCT Alliance ends FY21 on a high note

KUALA LUMPUR (Feb 23): Property developer NCT Alliance Bhd, formerly known as Grand-Flo Bhd, saw its net profit surge 3.5 times to RM16.96 million for its fourth quarter ended Dec 31, 2021 (4QFY21) from RM4.77 million a year ago, mainly contributed by stronger take-up rate of its Grand Ion Majestic project in Genting Highlands, Pahang.

Earnings per share increased to 2.63 sen for 4QFY21, from 1.04 sen for 4QFY20.

Quarterly revenue also jumped 236.9% to RM119.61 million, from RM35.5 million a year ago.

In a statement on Tuesday (Feb 22), NCT Alliance executive chairman and group managing director Datuk Seri Yap Ngan Choy said key contributors to the group's improved quarterly performance were the sales from its Grand Ion Majestic and Grand Ion Delemen (GID) projects, coupled with recurring income from the leasing of its commercial units at GID.

"These two key projects are expected to generate sustainable income and cash flow stream over the next two to three years, further contributing to earnings growth,” he said.

The impressive quarterly performance lifted the group's net profit for the 12 months ended Dec 31, 2021 (FY21) to RM34.55 million, 514% higher than the RM5.63 million registered in the previous year. Revenue rose 173.8% year-on-year to RM210.6 million, from RM76.9 million in FY20.

In a bourse filing, NCT Alliance said FY21 has been a challenging year for the property sector, given the adverse market conditions left behind during the prolonged Covid-19 pandemic.

Moving to FY22, the group is cautiously optimistic of the market sentiments and will focus on monetising its inventories and progressing its development projects for timely completion.

"Given the pace of recovery is conditioned on the resiliency of the vaccinated against the emergence of new Covid-19 variants and stability of the building material prices, new product launches will be phased according to the prevailing market conditions. Grand Ion Majestic and Grand Ion Delemen are expected to contribute significantly to the group’s earnings," it noted.

NCT Alliance shares closed unchanged at 52 sen on Tuesday, bringing a market capitalisation of RM462.48 million.

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