Metro Kajang reports net profit of RM42.4 million for FY2009

KUALA LUMPUR: Metro Kajang Holdings Bhd’s revenue rose 8% to RM373.6 million for its financial year (FY) ended Sept 30, 2009, from RM346 million in FY2008, but profit before tax dropped by 18.4% to RM57.9 million from RM71 million in the previous corresponding period.

Net profit attributable to shareholders declined by 17.8% to RM42.4 million from RM51.6 million previously, translating to earnings per share of 18.51 sen, the company announced on Nov 25.

The higher profit in FY2008 was due to the recognition of fair value gain on investment properties of RM25.3 million. Excluding the gain, Metro Kajang’s FY2009 pre-tax profit rose 26.9% y-o-y.

Datuk Alex Chen, executive chairman for the group, attributes the healthy growth despite challenging times, to the steady contribution from the property development and investment divisions.

Meanwhile, the contribution of non-property related businesses grew to 12.7% of the group’s FY2009 operating profit, from a zero base in FY2008. These businesses include the integrated livestock division, which posted a 39.1% increase in operating profit of RM6.4 million from RM4.6 million in FY2008.

As for the furniture manufacturing division, it returned to profitability with operating profit of RM4.7 million from a loss of RM600,000 previously.

For property development, Metro Kajang secured sales amounting to RM139 million in FY2009, mainly from its on-going projects – Pelangi Semenyih, Metro Avenue, Sentosa Avenue, Sentosa Villa in Kajang and Saville Residence condominium along Old Klang Road.

The division is looking to aggressively launch projects in FY2010. There is the initial phase of four new projects that comprise of three township projects in the Kajang and Semenyih areas; and Melawati Serviced Apartments project, located in Desa Melawati, Kuala Lumpur. These projects have a total estimated gross development value (GDV) of about RM2 billion and will be developed over the next six to eight years.