PROPERTY NEWS: MRCB's first-quarter profit rose by 170 percent boosted by LRT3 and property projects

Key takeaway: 

The full completion of the Light Rail Transit 3 (LRT3) project helped Malaysian Resources Corp Bhd (MRCB) increase its first quarter (1Q) net profit by 170 percent to RM14.03 million from RM5.2 million a year ago.

Sentral Suites and TRIA 9 Seputeh, two of the group's main property development projects, contributed more to the better performance, according to a filing.

For the quarter ending March 31, 2022, earnings per share increased to 0.31 sen from 0.12 sen the previous year.

Revenue increased by 258 percent to RM810.71 million from RM226.71 million the previous quarter.

The LRT3 project, which had reached physical construction progress of 71 percent and financial progress of 63 percent at the end of March, MRCB stated, boosted its operational profit to RM52.33 million from RM14.87 million.

"Also contributing were the sales of unsold inventory and continuing property development projects, such as Sentral Suites in KL Sentral, the 9 Seputeh mixed residential buildings in Jalan Klang Lama, and Alstonia in Bukit Rahman Putra, Sungai Buloh.

"The group's 27.94 percent equity owned Sentral REIT and associated company Sentral REIT Management Sdn Bhd contributed a combined profit after tax of RM3.9 million to the group in the financial quarter ended March 31, 2021, compared to RM4.3 million in the financial quarter ended March 31, 2021," the group said.

Looking ahead, MRCB stated its top priority in 2022 will be to improve cash flow by monetising its unsold completed stock inventory, which stood at RM349.7 million as of March 31.

With the opening of borders, the group hopes to increase sales from overseas purchasers, particularly for the VIVO 9 Seputeh complex and St Regis units.

The MRCB also expressed interest in continuing to tender for significant infrastructure projects like the future Mass Rapid Transit 3 project.

On Tuesday (May 31), MRCB shares rose one sen, or 2.86 percent, to 36 sen, valuing the company at RM1.59 billion.

©️ May, 2022, mrcb.com.my