AME Elite 1Q net profit down 15.65% on finance cost

• Quarterly revenue, however, grew 78.36% to RM136.9 million from RM76.75 million a year ago, helped by the increase in construction services revenue to RM46.4 million and property development revenue of RM13.7 million.

KUALA LUMPUR (Aug 26): AME Elite Consortium Bhd's net profit for the first quarter ended June 30, 2022 (1QFY23) fell 15.65% to RM6.09 million from RM7.21 million in the same period last year mainly due to a finance cost of RM2.68 million, resulting from the unwinding of a discount on deferred land purchase considerations.

Quarterly revenue, however, grew 78.36% to RM136.9 million from RM76.75 million a year ago, helped by the increase in construction services revenue to RM46.4 million and property development revenue of RM13.7 million.

Earnings per share were trimmed to 0.95 sen from 1.13 sen previously, its Bursa Malaysia filing on Friday (Aug 26) showed.

On a quarter-on-quarter basis, AME Elite's net profit decreased by 70.85% from RM20.88 million in 4QFY22 as revenue marginally slipped from RM139.73 million.

AME Elite noted the group has been receiving more enquiries for its industrial properties from various multinational companies following the reopening of the nation's borders, which is expected to boost foreign direct investment inflows to the country and have a positive impact on the take-up of the group's industrial properties.

However, the industrial property developer expects continued pressure from the rising costs of building materials given the supply chain disruption and as such, proactive measures have been taken to mitigate the negative impact to enhance its profitability.

"The group has a healthy level of unbilled sales of industrial properties and construction order book, which will contribute to revenue recognition in FY23.

"We have also commenced the development of our new industrial park, namely i-TechValley, in 1QFY23 and we will continue developing i-Park @ Senai Airport City (Phase 3) to improve the group's profitability.

"While [being] mindful of potential changes in the business landscape in light of economic challenges at the macro level, we continue to identify and transform suitable land bank, to replicate our i-Park model in the central and northern regions of Peninsular Malaysia," it said.

AME Elite shares closed four sen or 2.68% higher at RM1.53 on Friday (Aug 26), valuing the group at RM980.2 million.