MRCB’s 2Q net profit down 23% on lower engineering and construction revenue

• MRCB said the lower earnings were due to much lower revenue contribution from its engineering, construction and environment division due to the completion of three major infrastructure construction projects last year, and the completion of two major property development projects from its property development and investment division in the first half of 2023.

KUALA LUMPUR (Aug 30): Malaysian Resources Corp Bhd’s (MRCB) net profit fell 22.93% to RM10.87 million or 0.24 sen for the second quarter ended June 30, 2023 (2QFY2023), from RM14.1 million or 0.32 sen a year earlier.

Quarterly revenue decreased 14.43% to RM599.35 million from RM700.39 million, according to the property and infrastructure company’s bourse filing on Wednesday.

MRCB said the lower earnings were due to much lower revenue contribution from its engineering, construction and environment division due to the completion of three major infrastructure construction projects last year, and the completion of two major property development projects from its property development and investment division in the first half of 2023.

No dividend was declared for the quarter.

For the first half of FY2023, MRCB’s net profit declined 31.26% to RM19.34 million from RM28.14 million in the same period of FY2022, as revenue dropped 11.22% to RM1.34 billion from RM1.51 billion.

On prospects, the group said its revenue and operating profit in the property development and investment division — a major source of the group’s revenue and operating profits — will continue to be progressively recognised in line with construction progress and from the sale of completed units in FY20023 and beyond.

“This division will also continue to earn a relatively stable income stream from its remaining investment properties, as well as its 27.94% equity interest in Sentral REIT,” it added.

Meanwhile, the group said its engineering, construction and environment division continues to actively tender for larger infrastructure contracting projects to replenish its order book. Its open tenders currently stand at RM30 billion.

MRCB’s share price closed one sen or 2.27% higher at 45 sen on Wednesday, valuing the company at RM2.01 billion. The stock has appreciated 55.17% from 29 sen so far this year.

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