KUALA LUMPUR (May 30): Malaysian Resources Corp Bhd (KL:MRCB) posted a 64.57% year-on-year (y-o-y) drop in its first quarter net profit due to lower sales and billings following the completion of two major projects.

Net profit for the three months ended March 31, 2024 (1QFY2024) was RM3 million compared to RM8.47 million a year earlier, MRCB said in an exchange filing. Earnings per share declined to 0.07 sen from 0.19 sen. Revenue fell 35.84% y-o-y to RM476.2 million from RM742.24 million.

The construction-and-property company did not declare any dividends for the quarter under review.

MRCB said it plans to focus on boosting cash flow by monetising its unsold completed stock, which amounted to RM342.9 million.

The property development and investment division has unbilled sales of RM387.3 million at the end of March which will be recognised progressively over the construction period of the development projects for Alstonia, Lilium and Residensi Tujuh, the company noted.

Vista, one of its larger newly launched developments in Australia's Gold Coast, will only start contributing to the revenue and profit after all sold units achieve financial settlement with the purchasers, MRCB noted.

So far, 105 units have been sold, representing 38% of the available units under the project with a gross development value (GDV) of RM1.5 billion.

In the longer term, the company still has 1,148 acres of land with potential GDV of RM31 billion.

On the engineering, construction and environment segment, key growth drivers include the redevelopment of Stadium Shah Alam and KL Station, as well as the construction of five additional stations and other related works for the Light Rail Transit 3 (LRT3) project.

MRCB is currently in negotiations for the projects, said MRCB. Ongoing projects like the RM380 million Muara Sg Pahang Phase 3 flood mitigation project will provide revenue in the meantime, it noted.

The LRT3 construction project has reached 94% physical progress and 90% financial progress by the end of March, resulting in lower progress billings during 1QFY2024.

Unbilled construction order book stood RM15.3 billion and has submitted bids to external clients for construction contracts worth RM33 billion.

“Other than transportation infrastructure projects, the group is also targeting climate change adaptation projects, like flood mitigation, renewable and clean energy infrastructure, and water projects,” it added.

Shares of MRCB closed up 1.5 sen or 2.21% at 69.5 sen on Thursday, giving it a market value of RM3.08 billion.