AME Elite’s 1Q net profit rises 50% on construction growth, property gains

PETALING JAYA (Aug 27): AME Elite Consortium Bhd’s net profit rose 50% year on year in the first quarter ended June 30, 2026 (1QFY2027), supported mainly by stronger contributions from its construction services segment and gains recognised on investment properties.

Net profit attributable to owners of the industrial property developer increased to RM48.59 million, or 7.64 sen per share, from RM32.39 million, or 5.07 sen per share, a year earlier, according to its unaudited results filed with Bursa Malaysia on Thursday (Aug 27).

Quarterly revenue rose 4.4% to RM195.74 million from RM187.46 million, while profit before tax increased 37.4% to RM69.42 million from RM50.52 million. Profit after tax climbed 46.4% to RM55.82 million from RM38.13 million. The figures reconcile with the filing.

The group recognised RM23.29 million in investment property fair value gains during the quarter, comprising a RM15.24 million realised gain arising from the disposal of an industrial property to AME Real Estate Investment Trust (AME REIT) and RM8.05 million in other fair value gains.

After tax and non-controlling interests, the two components contributed a combined RM16.29 million — RM9.27 million from the property disposal and RM7.02 million from the other investment property fair value gains.

Gross profit, however, declined 5.9% to RM57.86 million from RM61.48 million, which AME attributed mainly to lower margins on certain construction and engineering projects.

Construction offsets weaker property development

Construction services revenue increased 74.3% to RM80.35 million from RM46.11 million, driven by progress on ongoing projects. Rental, service income and sales of goods rose 21.8% to RM23.06 million, supported by additional factory leases and higher rental income from workers’ dormitories.

These improvements partly offset a 30.1% decline in property development revenue to RM68.94 million from RM98.66 million, which the group attributed to lower stages of work completed and the timing of income recognition. Engineering services revenue slipped 1.6% to RM23.39 million.

By segment, property development generated an operating result of RM22.01 million, construction services RM6.34 million and engineering services RM1.21 million. The investment holding, property investment and management services segment reported an operating result of RM31.77 million, inclusive of the investment property fair value gains.

AME said it had RM395.1 million in unbilled sales from i-TechValley at SILC in Johor, while its 50%-owned Northern TechValley @ BKE joint venture in Penang had RM116.9 million in unbilled sales. Its external construction and engineering order book stood at RM485.7 million.

Selangor expansion

The group recently previewed the 151.2-acre i-Park @ Coalfields industrial development in Selangor, a joint venture with KLK Land with an estimated gross development value of RM1.3 billion. The project’s first phase comprises 1.5-storey semi-detached factories, according to the company.

AME said it continued to pursue suitable landbank opportunities to support future development and long-term growth, while focusing on i-TechValley at SILC and i-TechHub in Johor and Northern TechValley @ BKE in Penang.

Separately, AME’s proposed acquisition of two freehold industrial land parcels in Senai, Johor, totalling about 31.82 acres for RM101.18 million remains subject to conditions precedent and had not been completed as at the date of the quarterly report.

For FY2027, AME said it expects performance to remain satisfactory, while cautioning that Middle East conflicts had begun to place inflationary pressure on construction and operating costs and affect business sentiment.

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