KUALA LUMPUR (May 30): Malaysian Resources Corp Bhd (MRCB) saw its net profit for the first financial quarter ended March 31, 2017 (1QFY17) more than double to RM10.46 million, from RM4.38 million a year ago, on higher contribution from its property development segment.

Earnings per share rose to 0.49 sen from 0.25 sen, the group said in a filing with Bursa Malaysia.

Revenue grew 20.4% to RM524.85 million from RM436.02 million in 1QFY16.

MRCB said the revenue and profit were mainly generated from its Sentral Residences project in Kuala Lumpur Sentral central business district (CBD) and its Easton Burwood project in Melbourne, Australia, as well as ongoing projects such as 9 Seputeh mixed residential development in Jalan Klang Lama here, the office towers at PJ Sentral Garden City, Menara MRCB in Putrajaya and Sidec Residential Project in Perak.

The results also included recurring income from its remaining investment properties in Kuala Lumpur Sentral CBD and Shah Alam of RM2.7 million during the quarter.

MRCB group managing director Tan Sri Mohamad Salim Fateh Din has described the group’s 1QFY17 results as a “good set of results”.

“The improved performance was driven by stronger revenue from MRCB Land, our property development division, lower finance costs and higher interest income,” he said in a statement from the group.

MRCB’s property projects, which are predominantly transit-oriented developments, have a gross development value of RM49 billion.

The group’s engineering, construction and environment division’s revenue was mainly contributed by the refurbishment and upgrading of facilities works to the National Sports Complex in Bukit Jalil and the ongoing construction of MRCB Land’s property development projects.

In addition, revenue was also recognised from the construction of several commercial buildings for clients in Johor, power transmission-related construction projects across Peninsular Malaysia and other civil engineering projects in the Klang Valley.

The group’s external construction order book currently totals RM7 billion.

MRCB’s share price closed up one sen or 0.71% yesterday at RM1.41, giving the group a market value of RM3.08 billion.

This article first appeared in The Edge Financial Daily, on May 30, 2017.

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