Malton profit rises on higher income recognition

KUALA LUMPUR (Nov 17): Property developer Malton Bhd saw its 1QFY12 net profit more than double due to a higher recognition of income from its ongoing projects and the launch of Amaya Maluri.

Net profit for 1Q ended Sept 30 rose to RM12.1 million from RM5.54 million the previous year while revenue improved 44.3% to RM99.2 million from RM68.7 million.

Earnings per share rose to 2.9 sen from 1.59 sen, while net assets per share stood at RM1.33.

The company's property development segment generated 66% or RM65.7 million in total revenue, followed by construction and project management, and property trading.

Earnings from construction and project management segment improved year-on-year due to progress in external projects.

Malton said its ongoing developments, Amaya Maluri and Bukit Rimau Shops, are expected to contribute positively to its current financial year.

The company proposed a final dividend of 0.85 sen less tax, and a final tax exempt dividend of 1.15 sen per share for its FYE June 30, 2011.

With the completion of the company's rights issue of RM139.34 million nominal value seven-year 6% redeemable convertible secured loan stocks in early July, the group is expected to save interest costs arising from retirement of borrowings with higher interest rates and enhance its earnings through acquisitions of new land in strategic growth areas such as the Klang Valley, Penang and Johor for future development, it added.

Malton shares eased one sen to 69 sen on heavy volume of 23.43 million shares on Wednesday.

Early in the day, the stock hit a three-month high of 72.5 sen before easing on profit-taking.