AmCorp Properties Q3 earnings fall 73.8% to RM5.9m

KUALA LUMPUR (Feb 5): Amcorp Properties Bhd's (AmProp) net profit for the third quarter ended Dec 31, 2014, fell 73.8% to RM5.9 million. The sharp drop was because the previous corresponding quarter’s earnings of RM22.5 million, had included gains on a tax claim of RM19.1 million.

Revenue for Q3 decreased 33.6% to RM39.6 million, with projects in Malaysia and London having contributed RM24.9 million; while the renewable energy & contracting division having contributed RM14.7 million.

"Revenue from Malaysia properties was derived from Sibujaya township in East Malaysia and Kayangan Heights in Shah Alam, totalling RM18.7 million. Rental income from investment properties in both UK and Malaysia, contributed further revenue of RM5.2 million," said AmProp (fundamental: 2.4; valuation: 2.4) in a Bursa Malaysia filing this evening.

"The renewable energy & contracting division revenue was derived from transmission works and commissioning contracts of RM10.9 million, coupled with power generation from both mini-hydro and solar projects of RM3.8 million," it added.

For the nine months ended Dec 31, 2014, net profit declined 16.2% to RM30.6 million; while revenue increased to RM124.7 million, from RM116.1 million previously.

"The board expects sales from overseas and Malaysia property projects to contribute positively to the group's earnings. Barring any unforeseen circumstances, the board is optimistic that the group's operations will be profitable for the year ending March 31, 2015," said the company in its filing.

AmProp shares closed 0.5 sen or 0.63% higher at 79.5 sen, with a market capitalisation of RM468.45 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)