PETALING JAYA: Malaysian Resources Corp Bhd (MRCB) registered lower revenue of RM742.24 million and net profit of RM8.47 million in the first quarter of 2023, compared with revenue of RM810.71 million and a net profit of RM14.03 million in the corresponding period in 2022, primarily due to project completions that impacted the group’s financial performance.
“While the lower performance was mainly due to a lower contribution from the Engineering, Construction & Environment Division as a result of the completion of key infrastructure projects in late 2022, it was partially offset by a stronger performance from the Property Development & Investment Division,” it said in a statement.
The Property Development & Investment Division recorded a 44% revenue increase to RM267.9 million and a 58% increase in operating profit to RM33.3 million in Q1’23. This was due to Sentral Suites, the Division’s largest project achieving 100% construction completion, and the TRIA 9 Seputeh and Alstonia projects achieving higher construction progress of 96% and 61% respectively.
The division sold RM85.1 million worth of properties in Q1’23 and had unbilled property sales of RM220.3 million. The group’s investment holding in Sentral REIT and Sentral REIT Management Sdn Bhd contributed a combined profit after tax of RM2 million.
The Engineering, Construction & Environment Division recorded a 25% revenue decrease to RM458.5 million and a 128% decrease in operating profit to RM7.2 million. The lower revenue and operating profit was mainly due to the completion of the DASH Package CB2 and MRT 2 Package V210 infrastructure projects in late 2022.
The bulk of the division’s revenue was contributed by the LRT3 project, Muara Sg Pahang Phase 3 (Package 3) and the PR1MA Brickfields construction projects. As at March 31, 2023, the LRT3 project achieved physical construction progress of 84%.
The division’s long-term external client order book was RM26.4 billion as at March 31, 2023, while the unbilled portion was RM17.0 billion.
“The group’s strategy to diversify its business into overseas markets continues to gather pace, and its 51-storey, 280 apartment residential development in Surfer’s Paradise in Gold Coast, Australia, named VISTA, which has a GDV of AUD391 million (RM1.2 billion) was launched on April 12, 2023,” MRCB said.
