MCT Bhd Q4 earnings jump to RM30.7mil

PETALING JAYA: Property company MCT Bhd has posted another stellar quarter results, boosted by gains from the disposal of its investment subsidiary.

In a filing with Bursa Malaysia yesterday, the company said its net profit for the fourth quarter ended June 30 had jumped 70% to RM30.71mil from RM18.1mil a year earlier, mainly from a one-off gain of RM21.5mil recorded in the current quarter.

Revenue for the quarter under review increased 9.4% to RM184.63mil compared to RM168.78mil previously, driven by property development projects such as Lakefront@ Cyberjaya, Sky park@ Cy ber jay a and Cybersouth.

MCT said on May 31, its unit MCT Consortium Bhd had entered into a conditional share sale agreement with DA Perfect Holding Sdn Bhd to sell a 100% equity interest in Ecity Hotel Sdn Bhd.

The sale was completed on June 15 and resulted in a net gain of RM21.5mil.

“The divestment was in line with the group’s strategy to unlock value through monetisation and maximising working capital on ongoing projects, and also aims to strengthen the focus on property development projects and landbank expansion,” MCT said.

The company had also in December last year sold its subsidiary, which garnered a net gain of RM17.9mil.

Cumulatively, for the full financial year ended June 30, 2018, MCT posted a 23% surge in net profit to RM78.33mil from RM63.66mil a year earlier.

Its revenue for the period, however, fell 23.6% to RM450.3mil from RM589.7mil previously, as some of its projects, namely, Skypark@ Cyberjaya and Lakefront Villa@Cyberjaya were at their tail-end phases of completion by the current quarter, which factored in a slower completion rate versus the same quarter of the previous financial year.

MCT pointed out that its property development segment contributed 88% of total business revenue as compared to the previous corresponding period’s 93%, due to a higher revenue mix from a utility provider and complementary business.

Moving forward, MCT said that it is “positive and cautiously optimistic” on the recent developments in Malaysia. “With the recent corporate exercise of the mandatory general offer of Ayala Land, Inc through Regent Wise Investments Ltd, MCT is on its way to growing the business through a robust strategy, notwithstanding all factors affecting the property market,” it said.