MKH profit up on higher CPO and property sales

KUALA LUMPUR: Property developer MKH Bhd registered a net profit of RM32.3 million in the third quarter ended June 30 (3QFY13), a jump of 120% from RM14.7 million in the same quarter a year ago.

Its revenue came in at RM185.4 million, an increase of 33.4% year-on-year (y-o-y) from RM139 million. The company did not declare any dividend payment for the quarter under review.

In an announcement to Bursa Malaysia yesterday, the Kajang-based developer said the increase in revenue and profit was attributed to higher sales of crude palm oil (CPO) and palm kernel, as well as higher sales from its ongoing new development projects in its property and construction division.

As for the nine months ended June 30 (9MFY13), the company posted a net profit of RM79.2 million, against RM47.1 million in the same period a year earlier. Its revenue stood at RM470.4 million, climbing 25.1% y-o-y from RM376 million.

Moving forward, the company expects to achieve better results for full FY13 ending Sept 30, arising from profit recognition of the ongoing projects and sales locked-in in the previous financial years.

In a statement yesterday, MKH executive chairman Tan Sri Alex Chen Kooi Chiew (pic) said the company was on track to deliver growth for full FY13, underpinned by the strong performance in both its core businesses of property development and oil palm plantation.

He said the strong response to its new project launches has “resulted in our unbilled sales reaching a high of RM518.5 million as at June 30”.

“Our recent acquisition of Puncak Alam Resources Bhd has also served to further strengthen our development presence in Kuala Lumpur, doubling our undeveloped landbank to more than 1,000 acres.”

Chen noted that in 9MFY13, the plantation division achieved revenue of RM76.1 million and a operating profit of RM20.3 million, compared to an operating loss of RM12.0 million in 9MFY12.

This article first appeared in The Edge Financial Daily, on August 29, 2013.



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