NCT Alliance reports profit after tax of RM12.3 mil, 76% increase from same quarter last year

• This growth in profitability “is complemented by a 61% increase in revenue, which reached RM88.3 million, up from RM55 million in 1QFY2023”, stated NCT Alliance

KUALA LUMPUR (May 29): NCT Alliance Bhd reported profit after tax of RM12.3 million, a 76% increase from RM7.0 million in the same quarter last year.

Profit before tax increased by 86% to RM17.3 million from RM9.3 million in the same period.

This growth in profitability “is complemented by a 61% increase in revenue, which reached RM88.3 million, up from RM55 million in 1QFY2023”, stated NCT Alliance in a media release on the results.

The improved performance was primarily attributed to contributions from the Grand Ion Majestic and Acacia Residences projects. “The timely completion complemented by secured sales at these developments were key growth drivers this quarter,” it stated.

NCT Alliance was able to further pair down its project bridging loans and other borrowings, strengthening its balance sheet and effectively halving its net gearing ratio from 14% at the end of 4QFY2023 to 7%.

NCT Alliance also entered a conditional share sales agreement with NCT Venture Corporation Sdn Bhd on Feb 29, 2024. This agreement pertains to the acquisition of the entire equity interest in NCT Builders Group Holdings Sdn Bhd for a total consideration of RM100.89 million.

This proposed acquisition will provide access to approximately 140 acres of landbank for development, enabling NCT Alliance to diversify its property projects from residential to commercial. This will boost the group’s financial position, as the remaining gross development value (GDV) of RM604.3 milliom arising from its existing project will be increased to approximately RM2.4 billion in aggregate.

Additionally, NCT Alliance has proposed to acquire 10 parcels of leasehold development land in the District of Penampang, Sabah.

The land, totalling approximately 11.16 acres, will be acquired by NCT Borneo Sdn Bhd (NBSB), a wholly-owned subsidiary of NCT Alliance, for a consideration set at RM36 million. This strategic land acquisition is expected to expand NCT Alliance's development footprint in east Malaysia and enhance its future growth prospects, with an expected GDV of RM 480 million to be generated from the proposed development.

“We are pleased with our performance in the first quarter. Our strategic project deliveries for Grand Ion Majestic and Acacia Residences have driven substantial increases in both profit and revenue. We were able to capitalise on this momentum by significantly improving our financial position, lowering our net gearing ratio and increasing our balance sheet strength, allowing us to further capitalise on investment opportunities,” said Datuk Seri Yap Ngan Choy (pictured), executive chairman and group managing director of NCT Alliance.

"Building on this solid financial foundation, we are actively expanding our portfolio through the strategic proposed acquisition of NBGH and the development lands in Sabah. These investments are pivotal to our growth strategy, aimed at broadening our market reach and fortifying our long-term prospects in order to deliver improved shareholder value," he added.

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