Malton's 3Q net profit drops 39.7% on reduced property development contribution
KUALA LUMPUR (May 31): Property developer Malton Bhd’s net profit for the third quarter ended March 31, 2017 (3QFY17) dropped 39.7% to RM3.9 million or 0.87 sen per share from RM6.5 million or 1.45 sen per share a year ago due to reduced profit from its property development segment.
Revenue for the quarter rose marginally at 0.7% to RM156.4 million compared with RM155.3 million year-on-year.
“Revenue from the property development division was lower in 3QFY17 due to the completion of Nova Saujana and Phase 1 of Rapid City Centre in Johor with lower corresponding profit recognised.
“Revenue and profits from construction and project management division were higher in the quarter because of work progress of the external projects,” Malton said in a filing with Bursa Malaysia.
For the cumulative nine months period ended March 31, 2017 (9MFY17), net profit dipped 5.3% to RM14.3 million or 3.19 sen per share from RM15.2 million or 3.37 sen per share while revenue grew 17.1% to RM482.4 million versus RM411.8 million in FY16.
Moving forward, Malton said its on-going development projects and construction contracts would continue to contribute positively to its earnings for the financial year ending June 30, 2017 (FY17).
“Barring unforeseen circumstances, the board expects to achieve satisfactory results for FY17,” it added.
Its share price closed two sen or 1.4% down at RM1.41 yesterday for a market capitalisation of RM735.1 million. — theedgemarkets.com
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