MRCB sees 70% drop in 2Q profit on lower billings

• Going forward, MRCB said its property development and investment division remains focused on enhancing cash flow by monetising unsold completed stocks in Malaysia, as well as achieving its earmarked RM2.8 billion in launches for 2025.

KUALA LUMPUR (Aug 27): Construction and property group Malaysian Resources Corp Bhd (KL:MRCB) posted a 70.6% year-on-year fall in net profit for the second quarter on lower construction billing.

Net profit for the three months ended June 30, 2025 (2QFY2025), fell to RM15.07 million from RM51.18 million in 2QFY2024, according to the group’s bourse filing on Wednesday. Revenue dropped 20% to RM297.76 million from RM372.16 million a year ago.

The lower topline was due to the decline in revenue of the property development and investment segment, which fell 60% year-over-year to RM28.53 million during the quarter, due to the lower contribution from the sale of completed unsold units and ongoing projects.

On a six-month basis, the segment’s revenue fell 56% from a year ago to RM74.53 million.

Meanwhile, revenue for the engineering, construction and environment segment also declined by 12% during the quarter to RM248.2 million from RM282.3 million a year earlier, as the LRT3 project’s construction neared completion, while new project awards were still in very early stages.

On a six-month basis, the segment’s revenue fell by more than a third to RM400.91 million from RM642.6 million a year ago.

No dividend was declared for the quarter.

As a result, MRCB’s net profits more than halved in the first half of the year compared with the corresponding period a year ago, dropping to RM23.66 million, as revenue fell 39.2% to RM515.95 million from RM848.35 million.

Going forward, MRCB said its property development and investment division remains focused on enhancing cash flow by monetising unsold completed stocks in Malaysia, as well as achieving its earmarked RM2.8 billion in launches for 2025.

The group’s unsold completed stock in Malaysia stood at RM362.2 million in gross development value (GDV) at end-June while it has launched RM1.7 billion in new property development projects to date.

On the engineering, construction and environment segment, MRCB cited the segment’s contract wins to date amounting to RM5.6 billion.

Shares in MRCB ended half a sen or 1% higher at 50.5 sen, valuing the group at RM2.26 billion.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.