Mega First net profit more-than-doubles on construction, energy sales gains

KUALA LUMPUR (Feb 25): Mega First Corp Bhd’s fourth quarter net profit more than doubled to RM84.18 million, from RM31.17 million a year earlier, thanks to a higher profit from the construction segment and maiden income from energy sales.

Earnings per share for the quarter ended Dec 31, 2019 (4QFY19) rose to 20.67 sen, from 7.92 sen previously.

The group declared a first and final dividend of six sen per share, compared with two dividends totalling four sen for FY18. 

Quarterly revenue fell 11.5% to RM195.53 million, from RM220.93 million a year ago, no thanks to lower construction revenue which more than offset the maiden energy sale in the quarter.

For FY19 as a whole, Mega First’s net profit rose 18.88% to RM153.67 million from RM129.27 million in FY18, due to lower tax incurred and higher power segment contribution, which more than offset a lower profit from the construction segment and investment holdings. 

Full-year revenue fell 19.7% to RM701.93 million, from RM874.12 million previously, dragged by lower construction revenue which was partially offset by higher energy sales and higher revenue from the packaging business. 

For FY20, the group expects to receive a significant boost to earnings from full commercialisation of its Don Sahong power project in Laos.

The group is also seeking opportunities in large-scale solar projects, and is putting efforts to market its unsold property units.

Shares of Mega First traded unchanged at RM5.30 today, giving the group a market capitalisation of RM2.36 billion.

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