MRCB net profit more than doubles in Q1 on lower costs, higher income

PETALING JAYA: Malaysian Resources Corp Bhd’s (MRCB) net profit for the first quarter ended March 31, 2017 more than doubled to RM10.46 million from RM4.38 million a year ago due to lower finance costs charged and higher finance income generated.

In a filing with Bursa Malaysia yesterday, it said that the lower finance costs charged and higher finance income generated were due to more effective cost management of its working capital.

“The group’s residential property development projects, Sentral Residences and Easton Burwood in Melbourne, Australia, which were fully constructed during the quarter under review, also contributed positively to the group’s results,” it said.

Revenue for the quarter rose 20.37% to RM524.85 million from RM436.02 million a year ago due to contribution from property development and investment as well as engineering, construction and environment.

For property development and investment, revenue was mainly generated from Sentral Residences and Easton Burwood, as well as ongoing projects, namely 9 Seputeh, PJ Sentral Garden City, Menara MRCB and SIDEC residential project in Perak.

Its investment properties in Shah Alam and Kuala Lumpur continued to contribute recurring income of RM3.6 million during the quarter.

The bulk of the engineering, construction and environment division’s revenue was contributed by the refurbishment and upgrading of facilities works to the National Sports Complex in Bukit Jalil and ongoing construction of most of its development projects.

Several commercial buildings that are being constructed for clients in Johor, power transmission-related construction projects in Peninsular Malaysia and other civil engineering projects in the Klang Valley also contributed to the division’s revenue.

MRCB said it will focus on marketing its new residential projects including Sentral Suites while revenues and profits will continue to be progressively recognised this year from Vivo (Phase 1 of 9 Seputeh), offices in PJ Sentral Garden City and Menara MRCB.

The group’s cumulative unbilled sales as at March 31, 2017 are expected to deliver RM1.5 billion in revenue to be booked over the development period of its projects. Its 400 acres of land will provide a sustainable pipeline of revenue from property development projects centred around mass transport infrastructure.

The construction, engineering and environment division will continue tendering for more contracting projects to replenish its order book, with more emphasis on seeking civil engineering and long term fee based management projects.