MRCB exceeds RM1.2b sales target, proposes 1.75 sen dividend

KUALA LUMPUR (March 1): Malaysian Resources Corp Bhd (MRCB) exceeded its sales target of RM1.2 billion last year to hit RM1.4 billion. This was largely contributed by its Sentral Suites development in KL Sentral and 1060 Carnegie development in Melbourne.

Unbilled property sales at end-2017 stood at RM1.71 billion. It has a land bank of 393 acres (159.04ha), with an estimated gross development value of RM55 billion.

The property and construction group reported a 44% year-on-year drop in net profit to RM105.65 million in the fourth quarter ended Dec 31, 2017 (4QFY17) from RM188.08 million, on lower property development and investment income.

In a statement, MRCB said this was due to the completion of Sentral Residences in KL Sentral and its Easton Burwood project in Melbourne in early FY17, and new projects being in early construction phases, where sales recognition is still minimal.

There was also the absence of a previous one-off gain of RM242.6 million from the sale of Menara Shell and other assets in 2016, compared with only RM60.8 million in gains recognised in 2017.

Quarterly revenue fell 60% y-o-y to RM408.16 million from RM1.03 billion.

Nevertheless, the group proposed a first and final dividend of 1.75 sen per share amounting to RM76.8 million for FY17, subject to shareholders’ approval.

The weak quarterly performance dragged down the group’s net profit for full-year FY17 by 37.3% to RM167.58 million from RM267.36 million in FY16.

Revenue, however, was up 17.3% to RM2.82 billion from RM2.41 billion the previous year, mainly due to contribution from the engineering and construction division.

MRCB said the engineering, construction and environment division’s revenue jumped 106.8% year-on-year to RM1.8 billion in FY17.

MRCB group managing director Tan Sri Mohamad Salim Fateh Din said the group has tendered for some large infrastructure projects and is awaiting the results.

This article first appeared in The Edge Financial Daily, on March 1, 2018.

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