PETALING JAYA: Malaysian Resources Corp Bhd (MRCB) has returned to the black with a net profit of RM23.7 million for the third quarter ended Sept 30, 2022 (Q3’22), against a net loss of RM32.16 million in the same quarter last year.
Its revenue swelled sixfold to RM860.02 million from RM137.88 million year-on-year mainly due to more normalised operations after two years of Covid-19-related disruptions, which resulted in increased revenue and profit recognition from construction progress and a pick-up in sales of completed inventory.
Year-to-date, MRCB registered a net profit of RM51.83 million from a net loss of RM59.37 million last year as revenue grew fourfold to RM2.37 billion from RM590.34 million in the corresponding period last year.
The result was attributable to higher recognition of construction progress and sales of completed inventory which showed a marked pick-up after two years of Covid-19-related disruptions and construction site closures.
The group’s performance was also bolstered by the consolidation and construction progress of the LRT3 project company Setia Utama LRT3 Sdn Bhd.
As of Sept 30, 2022, the group’s property development & investment division saw an increasing trend in sales and sold RM342.2 million worth of properties from its completed and ongoing developments.
The company’s immediate priorities moving forward remain on enhancing cashflow by monetising its inventory of unsold completed stock, which stood at RM269 million on Sept 30, 2022. It looks forward to improved sales from foreign buyers with the opening of borders, particularly for Vivo 9 Seputeh development and St Regis units.
The group’s pipeline of long-term projects include the six-phase 810.57-acre integrated logistics park in Perak; as well as projects in the Gold Coast, Australia (GDV: A$296 million), which is targeted for launch in early 2023; and New Zealand (GDV: NZ$452 million), which will begin development in 2024. Its construction tender book is worth RM30 billion as of Sept 30, 2022.
“In the meantime, the group will continue to closely monitor conditions in the broader economy and property market, particularly in light of the rising global interest rate cycle which has had a knock-on effect on Malaysian interest rates, as well as geopolitical tensions, revising its strategies and financial targets accordingly, including reviewing its future launches if conditions dictate,” it said.