MRCB dips into the red with RM5.3m net loss in 4Q

KUALA LUMPUR (Feb 23): Malaysian Resources Corp Bhd (MRCB) swung to a net loss of RM5.28 million for its fourth quarter ended Dec 31, 2014 (4QFY14) from a net profit of RM2.22 million a year ago, mainly due to the group’s share of results of a joint venture which incurred losses due to charge out of finance and start-up costs.

MRCB (fundamental: 0.45; valuation: 0.60) however, saw its revenue jumped 32% to RM487.17 million, from RM369.0 million in 4QFY13. Loss per share for 4QFY14 was 0.30 sen, compared with an earnings per share of 0.13 sen a year ago.

For the 12 months period (FY14), MRCB  managed to return to a profit, reporting a net profit of RM152.63 million compared with a net loss of RM109.13 million in FY13. EPS was 8.93 sen compared with a loss per share of 7.38 sen in FY13.

MRCB attributed the better FY14 performance to strong growth from the group’s property development division and the disposal gain from the sale of investment in DUKE, which was recognised in the second quarter of FY14.

Revenue also soared 61% year-on-year to RM1.51 billion, from RM940.91 million.

“The higher revenue was mainly driven by strong growth from the Group’s property development division, which is currently actively developing the 9 Seputeh along Old Klang Road, PJ Sentral in Petaling Jaya, and the Q Sentral Office and The Sentral Residences at KL Sentral.

“This is followed by the Engineering & Construction division, which is currently undertaking the on-going construction of the Ampang Line LRT extension line, Kelana Jaya extension line, river rehabilitation project and transmission lines projects,” said MRCB in a filing with Bursa Malaysia today.

Going forward, the group is optimistic to perform satisfactorily in FY15, as it expects to launch more development projects.

“In line with the 4.5% projected growth of the Malaysian economy in year 2015, and the group’s on-going development, projects at prime locations will continue to be key revenue drivers, contributing positively to the group’s profitability,” it said.

MRCB shares closed 1 sen or 0.7% lower at RM1.40 today, bringing its market capitalisation to RM2.52 billion.

(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.)

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