KUALA LUMPUR (May 20): Property development and management group Menang Corp (M) Bhd (KL:MENANG) has declared a special dividend of six sen a share as its quarterly earnings rose to a six-year high.

Net profit more than doubled to RM7.32 million for the third quarter ended March 31, 2024 (3QFY2024) from RM3.28 million a year earlier, while revenue fell 5.13% to RM21.03 million from RM22.17 million, according to the group's bourse filing.

This is the group's highest net profit since since 4QFY2018 when it recorded a net profit of RM8.29 million.

The better quarterly earnings were due to an adjustment it made to reverse the over-accrued liability in the current quarter, totalling RM4.57 million.

Meanwhile, it attributed the lower quarterly revenue to maintenance works and a lower interest income derived from operating financial assets.  

For the first nine months of FY2024, Menang said its net profit rose 64.79% to RM16.94 million from RM10.28 million a year earlier, as revenue increased 12.59% to RM74.26 million from RM65.95 million.

In addition to the RM4.57 million reversal of over-accrued liability, the nine-month net profit was also due to the recognition of a RM2.01 million income receivable from the Customs Department due to a goods and services tax (GST) audit overcharge in 2020.  

Earnings were also boosted by lower expenses. Administration expenses came down 64.27% to RM1.88 million from RM5.26 million, and finance costs decreased 8.19% to RM17.20 million from RM18.73 million.

Looking ahead, the group said it will be actively pursuing transformative opportunities while concurrently strengthening its financial position through the expansion of its capital base and the reduction of borrowings.

"Further, the group will continue to explore the development opportunities on our existing land bank situated around Seremban 3, Klang, Port Dickson, Rantau, and Ulu Bernam, with the aim of maximising the potential value to our shareholders," it added.  

As at end-March 2024, the group’s financial liabilities stood at RM346.91 million, of which RM305.26 million are loans and borrowings and RM41.65 million are trade, other payables and net of sales and service tax (SST) payable.

Menang’s share price closed up seven sen or 9.6% at 80 sen, bringing the group a market capitalisation of RM420 million.