KUALA LUMPUR: Malaysian Resources Corporation Bhd (MRCB) third quarter ended September 30 financial results saw a surge in its net profit of over four times to RM29.39 million compared with RM5.64 million made in the previous corresponding quarter.
Revenue was also up by 47.4 per cent to RM551.22 million compared with RM374.06 million in the previous corresponding quarter (Q3FY15), mainly due to group’s core operating activities of property development and investment.
However, the cumulative net profit for the nine months, also ended September 30 this year, fell to RM79.28 million, down 73.9 from RM303.60 million from the previous corresponding nine-month period, due to a RM278.5 million gain from disposals of group’s non-core assets last year.
Revenue was up five per cent at RM1.376 billion, from RM1.31 billion before.
The company expects a busier year ahead with five new projects slated for launch, despite the slowdown in the property market.
Two of these projects are the Petaling Jaya-based Menara Celcom and Sentral Suites which has been touted as the “last residential address in KL Sentral” with a gross develoment value of RM1.6 billion.
“We have already received strong interest in this project, and as such expect some 30 per cent or RM500 million take-up within next year’s first quarter itself,” said chief corporate officer Amarjit Singh Chhina after the company’s extraordinary general meeting,here, yesterday.
He said the project will be fully completed in 54 months.
“We are also launching our Menara Celcom with an indicative GDV of RM500 million in middle of next year.
“This project will also be able to provide us recurring income as Celcom Axiata Bhd will be our anchor tenant for 21 years,” said Amarjit.
Amarjit said MRCB has already exceeded its property division sales target for this year as of last month.
“We set a target of RM1 billion in property sales target for this year, and we have already reached RM1.3 billion in sales as of November,” he said.
“We are now targeting RM1.5 billion in sales for next year which we are also confident of achieving given our existing business model that is different in this segment.”
Amarjit said as MRCB’s property unit is mostly driven by its commercial approach than residential, it has not been affected by the downturn.
MRCB yesterday received shareholder approval for the disposal of Menara Shell to real estate investment trust (REIT), MRCB-Quill REIT for RM640 million.
MRCB’s wholly-owned subsidiary, MRCB Builders Sdn Bhd also received the nod to become the project delivery partner for the Kwasa Damansara Township with a provisional fee of RM112.3 million.
“We are hopeful that both of these deals could be finalised by year-end so that it could translate positively into our 2016 financial year results,” said Amarjit.
The group expects its outstanding tender book of approximately RM8 billion to boost its construction order book of RM6.7 billion.
MRCB was up by five sen to end RM1.31 yesterday, thus giving the firm a market capitalisation of RM28.1 billion. A total of 1.56 million shares were transacted.
MIDF has a “buy” call with a target price of RM2.08.