Magna Prima 2Q17 profit down 86.22%

KUALA LUMPUR (Aug 18): Magna Prima Bhd’s net profit in the second quarter ended June 30, 2017 (2QFY17) plunged by 86.22% to RM6.05 million from RM43.89 million in 2QFY16, when it recognised a fair value gain on investment property amounting to RM49.2 million in the otherwise loss-making quarter.

Earnings per share (EPS) in 2QFY17 stood at 1.82 sen, against 13.19 sen EPS in the same quarter last year.

Quarterly revenue, however, jumped 42.19% year-on-year to RM31.11 million, against RM21.88 million in 2QFY16.

“This quarter's revenue and profit were contributed mainly from sales of remaining completed units of The Istana, Jalan Kuching Phase 1 Shop Office, Desa Metari commercial project and Jalan Kuching residential project,” said Magna Prima in a filing.

For the first half of its financial year ending Dec 31, 2017 (1HFY17), Magna Prima made a net profit of RM8.15 million, down 83.53% from RM49.44 million in the same period last year — again due to the one-off gain of RM49.2 million in 2QYF16.

Revenue in the period was 12.24% lower at RM40.74 million, from RM46.43 million in 1HFY16.

Almost all of Magna Prima’s topline in 1HFY17 was derived from its property development division. Its construction and engineering arm registered no revenue in the period, as it “only carried out internal projects in the current year”, said the property developer.

As at June 22, Magna Prima has around 32 acres of land in the Klang Valley, with gross development value (GDV) of more than RM2.2 billion to last the company between five and seven years.

This includes the 2.6 acres of prime land near KLCC with a book value of RM382 million for sale, previously the grounds for SJK (C) Lai Meng.

In April, the company has seen Hua Yang Bhd — also involved in property development around Klang Valley — emerge as its largest shareholder, after the latter bumped up its stake in Magna Prima from to 30.06% from 10.84%.

On prospects, Magna Prima expects its FY17 results to be “satisfactory”.

As at 5pm, shares of Magna Prima closed 1 sen or 0.68% lower at RM1.45, giving it a market capitalisation of RM482.31 million. — theedgemarkets.com

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