AME Elite 1Q earnings more than double on stronger property, construction segments

• AME Elite said revenue from the property development segment rose 63.5% to RM98.66 million, driven by higher stages of work completed and income recognition timing.

KUALA LUMPUR (Aug 28): AME Elite Consortium Bhd (KL:AME) reported on Thursday that its net profit more than doubled for the first financial quarter, lifted mainly by stronger contributions from its property development and construction segments.

Net profit for the three months ended June 30, 2025 (1QFY2026) rose to RM32.39 million from RM14.72 million a year earlier. Quarterly revenue grew 31.7% to RM187.46 million from RM142.38 million, according to the Johor-based industrial property developer in a bourse filing.

No dividend was declared for the quarter.

AME Elite said revenue from the property development segment rose 63.5% to RM98.66 million, driven by higher stages of work completed and income recognition timing. Construction services revenue climbed 23.8% to RM46.11 million, reflecting progress in ongoing projects.

Revenue from rental, service income and sale of goods rose 10.2% year-on-year, supported by additional factory units leased and higher income from workers’ dormitories. Meanwhile, engineering services revenue fell 13.9% due to the completion stage of ongoing engineering projects.

Looking ahead, AME Elite said it continues to see strong demand for its industrial properties, underpinned by positive rental income trends and rising property values. Its industrial parks’ strategic locations near major expressways have made them attractive to companies expanding in Johor, the group said.

“The presence of multinational corporations in our industrial parks has also created a clustering effect, attracting more multinational corporations and local enterprises to purchase or lease units within our developments,” the group added.

AME Elite expects the industrial property sector in Johor to remain active, supported by infrastructure projects such as the Johor Bahru-Singapore Rapid Transit System, the potential revival of the Kuala Lumpur-Singapore High-Speed Rail, and the Johor-Singapore Special Economic Zone, which are anticipated to draw both domestic and foreign direct investments.

In addition, AME Elite said it remains focused on ongoing developments, including i-TechValley at SILC and i-TechHub, which are expected to contribute positively to earnings. A joint venture, Suling Hill Development Sdn Bhd, will spearhead the development of Northern TechValley @ BKE, a 175.6-acre integrated industrial park in Penang.

The group also highlighted that the acquisition of development land from Kuala Lumpur Kepong Bhd (KL:KLK), expected to be completed in FY2026, will support its long-term growth plans.

Shares of AME Elite closed three sen or 1.94% higher at RM1.58 on Thursday, giving the group a market capitalisation of RM1.01 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.