MKH's 2Q net profit drops 17% on lower foreign exchange gains

• The group, which is mainly engaged in property development and construction, plantation, and building material trading, booked unrealised foreign exchange gains of RM800,000 for the quarter, compared with RM5 million in 2QFY2023, according to its bourse filing on Friday. 

KUALA LUMPUR (May 24): MKH Bhd (KL:MKH) said its net profit fell 17.23% to RM20.74 million for its second quarter ended March 31, 2024 (2QFY2024), from RM25.06 million a year earlier, dragged down by lower unrealised foreign exchange gains. Earnings per share dropped to 3.59 sen from 4.34 sen previously.

The group, which is mainly engaged in property development and construction, plantation, and building material trading, booked unrealised foreign exchange gains of RM800,000 for the quarter, compared with RM5 million in 2QFY2023, according to its bourse filing on Friday. 

Quarterly revenue, however, rose 4.48% to RM267.08 million from RM255.64 million a year earlier.

The group did not declare any dividend for 2QFY2024.

For the first six months of FY2024, MKH's net profit rose 29.60% to RM44.37 million from RM34.24 million in the year-ago first half, as revenue increased 19.57% to RM570.54 million from RM477.15 million.

Looking ahead, MKH said its unbilled sales of RM611.5 million and new property launches with an estimated gross development value of RM520 million in FY2024 will further strengthen its future unbilled sales. 

In its trading division, MKH said 74% of the sales of building materials were contributed by the group’s development projects. The group said it will continue to supply building materials to its ongoing and future development projects.

As for the group's plantation segment, MKH said it will be well supported amid good demand for crude palm oil (CPO) at the current price of RM3,600 per tonne in Indonesia. 

Tight CPO supply due to El-Nino dry weather will support the price, the group added.

MKH’s share price closed down one sen or 0.7% at RM1.37 on Friday, bringing the group a market capitalisation of RM804 million.

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