KUALA LUMPUR (Aug 30): Malaysian Resources Corp Bhd’s (KL:MRCB) net profit for the second quarter surged more than fourfold to RM51.18 million from RM10.87 million a year earlier, as contribution from its construction segment doubled.

Profit from the engineering, construction and environment division soared 146% to RM88.03 million in the second quarter ended June 30, 2024 (2QFY2024), up from RM35.83 million in 2QFY2023. This substantial increase was driven primarily by the LRT3 project and the Muara Sg Pahang Phase 3 (Package 3) flood mitigation project.

Earnings per share rose to 1.15 sen from 0.24 sen in 2QFY2023.

The group’s RM51.18 million net profit in 2QFY2024 translates to earnings per share (EPS) of 1.15 sen. That compares to RM10.87 million or 0.24 sen EPS in 2QFY2023.

However, revenue declined by 37.9% to RM372.16 million from RM599.35 million, due to reduced revenue contributions from the property development and investment segment, as well as lower revenue from the engineering, construction and environment division.

No dividend was declared for 2QFY2024.

As of June 30, MRCB reported that the LRT3 project has achieved 96% physical construction progress and 93% financial progress.

For the first half of FY2024, MRCB’s net profit surged by 180% to RM54.18 million from RM19.34 million a year earlier, despite a 36.76% drop in revenue to RM848.35 million from RM1.34 billion.

RM15b order book, RM1.9b property launches

In the property segment, MRCB is planning some RM1.9 billion worth of property launches for 2024, pending planning approvals.

This includes RM1.3 billion in New Zealand and RM600 million in Malaysia.

Key projects include The Symphony Centre, a 21-storey mixed-use development in Auckland, New Zealand, with a gross development value (GDV) of RM1.3 billion. Other notable projects are Parcel A of 9 Seputeh, with a GDV of RM400 million, and Lot R in KL Sentral, with a GDV of RM205 million.

As of June 30, the division had RM558.7 million in cumulative unbilled sales, said MRCB.

In the construction sector, MRCB holds an unbilled construction order book valued at RM15.7 billion and a construction tender book worth RM34 billion.

Future growth drivers for the division include the redevelopment of Stadium Shah Alam and the Kuala Lumpur Sentral Station, as well as the construction of five additional stations and other infrastructure works for the LRT3 project.

These projects are currently under negotiation with clients, with precise contract values yet to be determined, it said.

Additionally, ongoing projects such as the RM250 million Sungai Langat Phase 2 and the RM380 million Muara Sungai Pahang Phase 3 flood mitigation projects will further contribute to the division’s revenue, the group said.

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

Shares of MRCB closed up 3.5 sen or 6.8% to 55 sen on Friday, giving the group a market capitalisation of RM2.43 billion.