Improved property development revenue boosts Malton's 1Q net profit by 44%

KUALA LUMPUR (Nov 21): Property developer Malton Bhd's net profit in the first quarter of the financial year ended Sept 30, 2016 (1QFY17) rose 44.4% year-on-year (y-o-y) to RM6.26 million from RM4.33 million, mainly on higher revenue from its property development division.

The division, it said, saw higher billings and profits from its Bukit Jalil City Signature Shops and The Park Sky Residence projects, its filing to Bursa Malaysia yesterday showed.

Quarterly revenue gained 5.7% y-o-y to RM130.04 million from RM123.08 million, said its bourse filing.

It also noted that revenue and profits from construction and project management division declined compared to a year ago, as it saw lower billings from the Da:Men project, which is nearing completion.

No interim dividend was recommended for the period.

On outlook, the group said it is banking on ongoing development projects including the Bukit Jalil City Signature Shops, The Park Sky Residence, the Rapid City Centre in Johor and SK One Residence in Seri Kembangan, as well as ongoing construction contracts in hand — particularly the Pavilion Damansara Heights and Royale Pavilion Hotel projects — to contribute positively to its earnings for the FY17.

Hence, barring unforeseen circumstances, the group expects to achieve satisfactory results for its FY17.

Malton's share price settled 2 sen or 2.6% higher at 78 sen, giving it a market value of RM343.04 million.— theedgemarkets.com