PETALING JAYA (Feb 27): Driven by strong performance in the property development segment, Malaysian Resources Corp Bhd (MRCB) has recorded a revenue of RM1.032 billion in 4Q2016, a surge of 166% from the same quarter last financial year.
MRCB’s profit before tax in 4Q2016 was RM238.6 million, its results statement revealed today.
Revenue for the financial year ended Dec 31, 2016 (FY2016) rose 41.9% from the previous financial year to RM2.408 billion.
Profit before tax for the same period was 6.1% higher at RM392.6 million.
“Both revenue and profit before tax in the financial year ended Dec 31, 2016 was the highest recorded by the group in 10 years,” the developer said.
MRCB chief operating officer Kwan Joon Hoe (pictured), in an earlier report recently had said that the main contribution to the group’s revenue came from its two core operating activities — property development and investment as well as engineering, construction and environment.
He noted that property development has continued to support revenue growth despite the soft property market.
For the financial year under review, its property development and investment division has recorded revenue and profits from on-going projects, namely Sentral Residences in KL Sentral CBD, 9 Seputeh mixed development in Old Klang Road, the office towers at PJ Sentral Garden City, Menara MRCB in Putrajaya and the SIDEC residential project in Perak.
Its investment properties in KL Sentral CBD and Shah Alam had also contributed to the group’s revenue and profits.
Meanwhile, MRCB’s property projects, which are predominantly Transit Oriented Developments (TODs), have a gross development value (GDV) of RM48.9 billion.
In its new financial year, the company plans to launch residential properties with a combined GDV of RM1 billion in the group’s existing developments in Klang Valley, said Kwan.
Its engineering, construction and environment division’s external revenue and profits were mainly contributed by the recently completed LRT Ampang Line Extension and the LRT Stations 6 & 7 projects, the on-going construction of six commercial buildings in Johor, including the Westin Hotel and Aman Resort in Desaru, power transmission-related construction projects across Peninsular Malaysia and smaller scale civil engineering projects in the Klang Valley.
“Following a number of successful tenders, MRCB’s current external construction order book totals RM7 billion,” said MRCB.
Besides the sterling results, MRCB has continued its efforts to reduce its net gearing throughout 2016, which resulted in an improved gearing to 0.73 times at the end of 2016 from 1.27 times at the end of 2015. Its corporate transformation strategy was unveiled at the end of 2013, when net gearing stood at 1.73 times.