KUALA LUMPUR (Aug 28): AME Elite Consortium Bhd's (KL:AME) net profit for its first quarter ended June 30, 2024 (1QFY2025) dropped 36.7% to RM14.72 million from RM23.27 million a year earlier, due to lower contributions from property development and construction services, as well as share of loss from joint ventures.
Earnings per share fell to 2.30 sen from 3.64 sen, the group's bourse filing on Wednesday showed.
Quarterly revenue decreased 36% year-on-year to RM142.38 million from RM222.51 million.
AME Elite said property development revenue decreased 57.9% to RM60.34 million from RM143.37 million, mainly due to the lower stages of work completed and the timing of income recognition.
Construction services revenue, meanwhile, fell 24% to RM37.25 million from RM48.98 million, mainly due to the progression in the stage of completion of ongoing construction projects and reallocation of resources.
The group did not declare any dividend for the quarter.
On prospects, AME Elite said its industrial property sector is expected to remain active, supported by domestic and foreign direct investment inflows.
“Our industrial parks are located at strategic locations near to the expressway, making it an ideal choice for companies seeking to expand in Johor.
“We have experienced strong demand for our industrial properties, as well as growth in rental income and value of our investment properties,” it said.
The group also noted that it has been able to attract more multinational corporations to operate in its industrial parks, which it believes has helped to attract other MNCs and local enterprises to purchase or lease property units within its industrial parks.
“We will continue developing i-TechValley at SILC and i-Park @ Senai Airport City (Phase 3) to improve the group’s profitability. The joint venture entity, Suling Hill Development Sdn Bhd, targets to develop an integrated 175-acre industrial park in Perai, Penang during FY2025 which will sustain the group’s long-term growth,” it added.
AME Elite’s shares closed up two sen or 1.27% to RM1.60, valuing the group at RM1.03 billion.