NCT Alliance’s 3Q net profit down 36% on land cost adjustment

• The decrease in its profit before tax to RM4.71 million from RM14.17 million in 3QFY2023 was mainly due to land cost adjustment for the Ion Belian Garden project, upon completion of the acquisition of NBGH by the group.

KUALA LUMPUR (Nov 26): NCT Alliance Bhd (KL:NCT) saw its net profit for the third quarter ended Sept 30, 2024 (3QFY2024) fall 35.6% to RM6.52 million from RM10.12 million a year ago.

The decrease in its profit before tax to RM4.71 million from RM14.17 million in 3QFY2023 was mainly due to land cost adjustment for the Ion Belian Garden project, upon completion of the acquisition of NBGH by the group.

In a separate statement, NCT said that this acquisition pertains to a project under Ion Belian Garden, encompassing a total land bank of 105.3 acres in Batang Kali, Selangor.

Revenue for the quarter rose 6.6% to RM90.24 from RM84.63 in 3QFY2023, contributed by higher progressive profit recognition from ongoing development projects including Ion Belian Garden, Grand Ion Majestic and sales from the completed stock of Acacia project.

However, the revenue growth was partially offset by lower revenue from Grand Ion Majestic as the project was completed during the year.

Earnings per share fell to 0.41 sen compared to 0.68 sen a year ago. No dividend was declared for the quarter under review.

For the cumulative nine-month period (9MFY2024), the group’s net profit rose 7.4% to RM28.39 million from RM26.43 million last year, while revenue rose 25.7% to RM248.85 million from RM198.03 million.

NCT’s outlook of the property development sector is still positive, supported by Malaysia’s encouraging economic growth forecasts, favourable government policies and rollout of major infrastructure projects.

The group said that Bank Negara Malaysia’s decision to maintain its overnight policy rate (OPR) and the relaxation of the Malaysia My Second Home (MM2H) programme, as well as incentives through Budget 2024 are expected to support market demand for properties.

“However, we remain prudent, closely monitoring economic conditions and market trends to navigate challenges and seize emerging opportunities,” said NCT executive chairman and group managing director Datuk Seri Yap Ngan Choy.

NCT Alliance’s share price closed unchanged at 47 sen on Tuesday, giving the group a market capitalisation of RM861.63 million. Year-to-date, the stock has risen 42.42%.

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!