KUALA LUMPUR (May 15): Menang Corp (M) Bhd saw its net profit for the third quarter ended March 31, 2023 (3QFY2023) fell 28% year-on-year, as cost of sales rose in a larger quantum than the increment in the group’s revenue.
Net profit dropped to RM3.28 million for the quarter under review, from RM4.54 million for 3QFY2022, even though revenue grew 3.1% to RM22.17 million from RM21.51 million a year ago, the property developer told Bursa Malaysia on Monday (May 15).
The lower net profit was also due to the absence of one-off gains, as compared to the corresponding quarter a year earlier, said Menang in a Bursa filing.
Earnings per share dropped to 0.64 sen for 3QFY2023, from 0.93 sen a year ago.
Menang highlighted that its 3QFY2023 bottom line came in the absence of a one-off late payment from Lembaga Lebuhraya Malaysia in respect of the government’s compulsory acquisition of the group’s land in Klang, coupled with an income tax overprovision adjustment in 3QFY2022.
For the cumulative nine-month period (9MFY2023), the group’s net profit grew 8.7% to RM10.28 million or 2.02 sen per share, from RM9.46 million or 1.93 sen per share for the previous corresponding period, in spite of a meagre revenue growth of 1.3% to RM65.95 million from RM65.11 million.
“The group remains steadfast in the management of its PFI (private financing initiative) concession business and continues its resilient results,” said Menang.
The concession projects include developing a training centre for UiTM Nilai, as well as campuses for UiTM Seremban 3 and UiTM Puncak Alam, with the respective concession periods ending in July 2036, January 2034 and December 2035.
“The board and management are committed to their strategic priorities to improve the financial performance and financial position by exploring viable opportunities to develop the existing land bank, alongside further improving operational cost efficiency and productivity,” said the group when commenting on its prospects.
Menang is 11.9%-controlled by group managing director Toh May Fook, while executive director Lee Min Huat owns a 1.1% direct interest and 11.9% indirect interest through Chin Leong Thye Sdn Bhd.
Shares in Menang, which more than doubled year-to-date, closed 4.5 sen or 4.9% higher at 96.5 sen on Monday, giving it a market capitalisation of RM491.66 million.