SDB’s 1Q net loss widens to RM8.25m as revenue halves

PETALING JAYA (Aug 24): Selangor Dredging Bhd (SDB) posted a wider net loss of RM8.25 million for the first quarter ended June 30, 2026 (1QFY2027), compared with RM2.99 million a year earlier, as revenue nearly halved.

Revenue fell 48.4% to RM31.88 million from RM61.82 million, while pre-tax loss widened to RM7.50 million from RM1.81 million, according to the property developer’s unaudited quarterly filing with Bursa Malaysia on Monday (Aug 24). Loss per share widened to 1.93 sen from 0.70 sen.

SDB attributed the weaker result mainly to the timing of revenue and profit recognition from its development activities, as its current project portfolio remains at the earlier stages of construction.

It also cited higher sales incentives amid market uncertainty, as well as higher construction-material and labour costs that continued to pressure project margins.

The group said its results included a RM3.88 million contribution from the iron ore mining operations of Fortress Minerals Ltd.

Property development remains main revenue contributor

Property development remained SDB’s largest revenue contributor, recording RM26.28 million in external sales and a segment profit of RM6.80 million for the quarter.

Hotel operations generated RM4.31 million in external sales but recorded a segment loss of RM2.63 million, while property support services posted RM1.30 million in external sales and a RM239,000 segment loss.

On a quarter-on-quarter basis, SDB said its pre-tax loss widened from RM6.37 million in the preceding quarter to RM7.50 million, mainly due to staff separation costs incurred in connection with Hotel Maya’s transition to a new operator.

Unbilled sales at RM155.78 mil

Looking ahead, SDB said the domestic property market continues to face cautious buyer sentiment amid geopolitical tensions and global trade uncertainties.

The group said it will continue to advance its ongoing projects, manage costs and refine its product offerings to align with prevailing market conditions.

SDB expects earnings from its property development activities to remain gradual in the near term before strengthening progressively as construction advances and sales are secured.

The group had RM155.78 million in unbilled sales from ongoing projects as at its latest update.

Separately, SDB’s board has recommended a single-tier dividend of 3.0 sen per share, amounting to RM12.78 million, for the financial year ended March 31, 2026. The proposed dividend is subject to shareholders’ approval at the forthcoming annual general meeting.

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