23 May 2012
MRCB quarterly earnings rose 2.5%, profitability growth depends on outcome from on-going negotiations with Government on EDL Expressway toll collection
(MRCB closing price yesterday (22.5.2012) was RM 1.60)
Malaysian Resources Corporation Bhd's (MRCB) earnings rose 2.5% to RM22.15mil in the first quarter ended March 31, 2012 from RM21.60mil a year ago, mainly due to higher expenses, despite the sharply higher revenue.
It said on Tuesday its revenue increased by 48.3% to RM328.62mil from RM221.49mil. Pre-tax profit rose 48.3% to RM35.6mil from RM24.0mil. Earnings per share were 1.6 sen compared with 1.56 sen.
However its expenses in Q1 2012 rose 41.7% to RM291.84mil from RM205.90mil.
“The higher profit for the current quarter was mainly contributed by recognition of progress profit of the ongoing property development projects at Kuala Lumpur Sentral and recurring rental income from the newly completed KL Sentral Park office,” it said.
MRCB said positive revenue growth was due to higher revenue recognition especially from its ongoing property development projects at Kuala Lumpur Sentral.
On the outlook, it expected to deliver another year of revenue growth, driven by on-going property development projects in Kuala Lumpur Sentral.
MRCB said the newly completed KL Sentral Park office was attracting encouraging interests with tenancy expecting to reach full occupancy by this year.
Other projects underway were CIMB Tower at Lot A, Shell Tower at Lot 348 and the integrated Nu Sentral retail mall, three office towers and one block of hotel at Lot G which were expected to be completed within this year.
On the Eastern Dispersal Link Expressway (EDL) in Johor Bahru, it said the highway was opened to traffic on April 1. Meanwhile, negotiations were on-going with the government for toll collection.
“However, the board remains cautious for the group to deliver profitability growth considering the uncertainty of commencement of toll collection from the EDL and the competitive construction industry with pressure of increasing material prices and tight labour market,” it said.