MRCB's Q3 earnings, revenue drop

KUALA LUMPUR: Malaysian Resources Corp Bhd's (MRCB) net profit dropped 93.84 per cent to RM1.46 million in the third quarter ended Sept 30, 2023 (3Q23) from RM23.70 million a year ago. 

Its quarterly revenue declined 41.43 per cent to RM503.74 million from RM860.02 million previously, according to the company's filing to Bursa Malaysia on today. 

MRCB said the decline in revenue was due to much lower contributions from the property development and investment division, as well as the engineering, construction and environment division.

This followed the completion of three major infrastructure construction projects last year and two major property development projects in the first half of 2023 (1H23). 

The company's earnings per share fell to 0.03 sen compared to 0.53 sen in 3Q22. 

For the cumulative nine months, MRCB's net profit came in lower at RM20.80 million from RM51.83 million a year ago, while revenue fell 22.17 per cent to RM1.85 billion from RM2.37 billion. 

MRCB's property development and investment division recorded a revenue of RM459.5 million and an operating profit of RM35.7 million in 9MFY23, a decline of 30 per cent and 71 per cent respectively.

This was due to the 100 per cent completion of the Sentral Suites project in KL Sentral in March 2023 and the TRIA 9 Seputeh mixed residential project in Jalan Klang Lama in May 2023. 

Its engineering, construction and environment division recorded a 20 per cent decrease in revenue to RM1.34 billion and a 43 per cent increase in profits to RM87.6 million in 9MFY23, compared to the corresponding period in 2022. 

The lower revenue was due to the completion of the DASH Package CB2, Kwasa Utama C8, and MRT 2 Package V210 infrastructure projects in 2022, while the higher profit for 9MFY23 was mainly contributed by the LRT3 rail construction project, which achieved physical construction progress of 89 per cent and financial progress of 85 per cent as of Sept 30, 2023. 

MRCB expects its future growth being fuelled by the introduction of RM1.5 billion worth of properties in Australia and Malaysia in 2023.  

Additionally, the company looks forward to the RM4.0 billion slated for new property launches in New Zealand and Malaysia in 2024, alongside a substantial RM30 billion construction open tenderbook, and potential redevelopment opportunities for Stadium Shah Alam and KL Sentral Station.

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