MK Land net profit flat at RM15.69 million in 3QFY15

KUALA LUMPUR (May 25): MK Land Holdings Bhd saw its net profit remain flat at RM15.69 million in the third quarter of financial year 2015 ended March 31, 2015 (3QFY15) compared to RM15.68 million in the previous corresponding period as progress of construction in the property development segment were offset by higher loss from the leisure segment.

Earnings per share remained at 1.3 sen in 3QFY15 as in the previous corresponding quarter.

In a filing with Bursa Malaysia, MK Land also recorded a decline of 24.3% on its revenue to RM106.53 million in 3QFY15 compared to RM140.68 million in 3QFY14.

Year to date (YTD) net profit rose barely 4.5% to RM36.51 million or 3.03 sen per share against RM34.94 million or 2.90 sen per share in the previous corresponding period, while revenue slipped 17.8% to RM328.86 million from RM399.92 in the same period last year.

In accompanying notes to the filing, MK Land said its profit before tax increased marginally by 5.9% to RM24.61 million in 3QFY15 compared to RM23.24 million in 3QFY14.

“Property development segment generated RM96.9 million, representing 90.9% of the total revenue for the three months period ended March 31, 2015,” the note read.

“The revenue is mainly from the construction progress of projects in Damansara Perdana and Meru Perdana, Perak.  

“The lower revenue of the leisure segment was mainly due to lower occupancy rate during the period.”

MK Land said it expects to achieve satisfactory financial performance for the financial year ending June 30, 2015.

The company said its strategically located projects, especially in the Klang Valley and Ipoh are expected to be the key drivers for the group despite challenges arising from the implementation of the Goods and Services Tax (GST) and the measures introduced by the government to curb speculative buying activity and to reduce household debts.

“We will maintain focus on our strategies in the core property development segment to further our growth,” the note read.

MK Land shares closed unchanged at 42 sen, with a market capitalisation of RM505.93 million.