NCT Alliance posts RM20.5m 2Q profit, explores data centre development at NSIP

PETALING JAYA (Aug 20): NCT Alliance Bhd posted a net profit attributable to shareholders of RM20.50 million for the second quarter ended June 30, 2026 (2QFY2026), as lower revenue recognition from NCT Smart Industrial Park (NSIP) Phase 1 weighed on its year-on-year performance.

In a Bursa Malaysia filing on Thursday (Aug 20), the property developer said net profit was 16.7% lower than RM24.61 million a year earlier, while revenue fell 56.9% to RM87.05 million from RM201.87 million. Despite the lower revenue, pre-tax profit improved 18.8% quarter-on-quarter to RM26.97 million from RM22.71 million in 1QFY2026.

NCT Alliance attributed the year-on-year revenue decline mainly to higher construction progress achieved and recognised from NSIP Phase 1 in the corresponding quarter last year. Following the issuance of the project's certificate of completion and compliance (CCC), the remaining progress billings available for recognition for the relevant phase handed over during the latest quarter were correspondingly lower.

The group said the sequential improvement in pre-tax profit came mainly from a higher profit contribution from its property development segment, which recorded pre-tax profit of RM28.58 million, compared with RM25.12 million in 1QFY2026.

NSIP contributed RM69.07 million in quarterly revenue, compared with RM81.04 million in 1QFY2026. Grand Ion Majestic contributed RM10.61 million, up from RM8.60 million, while Ion Belian Garden contributed RM4.64 million, down from RM7.50 million.

Quarterly earnings also included RM12.09 million in other property-related income, mainly comprising forfeited booking fees and other cancellation-related income, RM6.61 million in rental income and a RM2.19 million fair-value gain on revaluation.

First-half profit largely steady

For the six months ended June 30, 2026 (1HFY2026), net profit attributable to shareholders was largely unchanged at RM35.95 million, compared with RM36 million a year earlier, despite revenue falling 37.4% to RM184.46 million from RM294.67 million. Pre-tax profit declined 11.1% to RM49.68 million from RM55.90 million.

NCT Alliance said the lower first-half revenue was mainly due to lower revenue recognised from NSIP Phase 1 following the issuance of its CCC in May 2026, resulting in a substantially lower revenue contribution from the project compared with the corresponding period last year.

Property development generated all RM184.46 million of the group's external revenue during the first half and recorded a segment profit of RM53.70 million, compared with RM62.53 million a year earlier. Investment holding and other activities recorded a segment loss of RM4.02 million, narrowing from RM6.63 million.

Exploring data centre development at NSIP

Looking ahead, NCT Alliance said NSIP remained a key contributor to the group's revenue and earnings, while development activities at NCT InnoSphere were progressing as planned.

The group said it is engaging prospective parties in relation to potential data centre development opportunities within NSIP. In this regard, it has signed a term sheet with a prospective party for a proposed development involving approximately 100 acres of land for data centre purposes.

NCT Alliance is also planning launches of Ion Borneo Garden and Ion Marina Bay in Sabah, subject to market conditions and the requisite approvals. The projects are expected to broaden the group's geographical presence and provide additional growth opportunities over the medium to long term.

The board said it remained cautiously optimistic about the group's prospects for FY2026, barring unforeseen circumstances.

The group had total borrowings of RM392.30 million as at June 30, up from RM319.74 million at end-2025. All its borrowings were secured and denominated in ringgit. The board did not recommend an interim dividend for the quarter.

Separately, NCT Alliance said in another Bursa Malaysia filing dated Aug 20 that there had been no material development since its previous announcement on the memorandum of understanding between NCT Land Sdn Bhd, a 99.34%-owned subsidiary of NCT World Sdn Bhd, which in turn is a 99.34%-owned subsidiary of NCT Alliance, and Guangzhou Great Power Energy & Technology Co Ltd.

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