MRCB's 3Q net profit surges over four times

KUALA LUMPUR (Nov 30): Malaysian Resources Corp Bhd (MRCB) recorded a surge in its net profit of over four times to RM29.39 million for 1.49 sen per share in its third quarter ended Sept 30, 2016 (3QFY16), compared with RM5.64 million or 0.32 sen per share in the previous corresponding quarter.

Meanwhile, revenue for the quarter was up by 47.36% to RM551.22 million, compared with RM374.06 million in the previous corresponding quarter (3QFY15), attributed to the group’s core operating activities, namely property development and investment, MRCB said in a statement released today.

However, the cumulative net profit for the nine months ended Sept 30, 2016 (9MFY16) fell to RM79.28 million, down 73.90% from RM303.60 million from the previous corresponding nine-month period (9MFY15). According to MRCB, this was due to the RM278.5 million gain recorded from disposals of the group’s non-core assets in 2015. 

Revenue was up 5% at RM1.376 billion, from RM1.31 billion.

MRCB did not announce any dividends for the period.

Segmentally, the property development and investment division recorded a higher revenue of RM353.90 million from its on-going projects in 3QFY16, compared with RM89.31 million a year ago, contributed most significantly by its Sentral Residences, which contributed just over half of the division’s revenue.

“(MRCB’s) property development projects, which are mainly focused on transit-oriented developments, presently have a gross development value (GDV) of RM48.9 billion,” the group said.

Meanwhile, the engineering, construction and environment division recorded a fall in revenue to RM146.90 million in the quarter, from RM234.04 million previously (3QFY15).

Going forward, the group expects its outstanding tender book of approximately RM8 billion to further increase its construction order book, which currently stands at RM6.7 billion, the group said.

MRCB also expects to continue reducing its net gearing, which had fallen to 1.00 times at the end of the quarter from 1.09 times in the immediate preceding quarter, after its RM640 million sale of Menara Shell to MRCB-Quill Real Estate Investment Trust.

Shares of the property and construction group closed up 3.97% or 5 sen at RM1.31 today, giving the firm a market capitalisation of RM28.1 billion. A total of 1.56 million shares crossed hands. — theedgemarkets.com