MRCB records 12.6% rise in net profit to RM5.8m in 2Q

KUALA LUMPUR: Malaysian Resources Corp (MRCB) recorded a 12.6% increase in net profit for the second quarter ended June 30 this year (2QFY13) to RM5.81 million, despite registering a 45% drop in revenue to RM185.73 million.

In a filing with Bursa Malaysia yesterday, MRCB said the lower revenue was mainly due to lower contribution from its engineering and construction division arising from lower contribution from the Kuala Lumpur Sentral projects.

The lower revenue was also due to lower contribution from the  infrastructure and environmental division following the completion of existing projects.

For the first six months, net profit dropped 60% to RM11.06 million against RM27.31 million previously. Revenue dropped 33.12% to RM447.77 million from RM670.13 million a year ago.

MRCB said the Kuala Lumpur Sentral Lot G office towers and hotel development were sold en-bloc in the preceding quarter, with construction duly completed in early 2013.

“The current on-going developments on Lot B (Q Sentral office) and Lot D (The Sentral Residences), which are on strata sales, are still at their early stage of construction,” it said in the filing.

The property and construction firm expects to be on track for further growth with the completion of its acquisition of Nusa Gapurna Development Sdn Bhd, which adds 9.46ha of prime development land in the Klang Valley.

“Together with current unbilled sales of about RM1.4 billion from the existing development of The Sentral Residences and Q Sentral office, the group is expected to be on track for further growth,” it said.

MRCB had entered into an agreement with Nusa Gapurna to acquire the entire equity interest in Gapurna Builders Sdn Bhd, Gapurna Land Sdn Bhd and Puncak Wangi Sdn Bhd, as well as a  70% stake in P.J Sentral Development Sdn Bhd for RM729 million.

This article first appeared in The Edge Financial Daily, on August 27, 2013.