AME Elite ekes out tiny quarterly profit on lower tax expenses

• “Overall, the board of directors expects the group to achieve better financial performance for FY2025,” AME Elite said.

KUALA LUMPUR (Nov 29): AME Elite Consortium Bhd (KL:AME) eked out a tiny gain in net profit thanks mostly to lower tax expenses, though the property developer is still confident of better finances this fiscal year.

Net profit for its second quarter ended Sept 30, 2024 (2QFY2025) was RM22.41 million, an increase of less than 3% when compared to the same period last year, AME Elite said in an exchange filing. Revenue for the quarter fell nearly 20% year-on-year to RM187.17 million due to lower billings.

The company also declared a higher dividend per share of three sen from two sen previously. The dividend will be payable on Dec 30.

“Overall, the board of directors expects the group to achieve better financial performance for FY2025,” AME Elite said. The company said it will continue developing i-TechValley at SILC and the third phase of i-Park @ Senai Airport City to improve the profitability.

AME Elite also said its joint venture entity, Suling Hill Development Sdn Bhd, aims to develop an integrated 175.6-acre industrial park in Perai, Penang during FY2025 which will sustain long-term growth.

“The strong net cash position bodes well for future industrial property development and investment projects,” it added.

For the first nine months, AME Elite’s net profit was down 18% to RM37.13 million when compared to the same period in 2023. Cumulative revenue fell 28% year-on-year to RM329.56 million.

Property development, a business which contributes the most revenue to the company, reported a 53% decline in revenue. Revenue from construction services, meanwhile, slipped 1.7% though the engineering segment recorded a 47% increase in revenue at the end of September.

The effective tax rate for the quarter and the nine-month period was lower than the statutory tax rate, mainly due to subsidiary AME Real Estate Investment Trust (KL:AMEREIT).

The trust expects to distribute more than 90% of its distribution income, making its income tax exempt, AME Elite noted.

AME Elite’s shares closed up two sen or 1.27% to RM1.60 on Friday, valuing the group at RM1.03 billion. Year-to-date, the stock has retreated 1.2%.

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