KUALA LUMPUR (Dec 30): Mercury Securities Group Bhd (KL:MERSEC), which posted a RM3.52 million net profit in the fourth financial quarter ended Oct 31, 2024 (4QFY2024), is “cautiously optimistic” about its prospects, as it sees positive trading conditions and corporate activities supporting the group’s performance in the coming financial year.

The stockbroking firm posted a net loss of RM422,000 a year ago, as its earnings were dragged by a RM3.93 million one-off non-recurring listing expense.

Its 4QFY2024 earnings were lifted by higher gross profit and interest income, with gross profit rising 7.3% to RM5.41 million — up from RM5.04 million — on increased revenue from the stockbroking segment and lower costs of services recorded. Interest income also grew 14.7% to RM1.11 million in 4QFY2024 from RM971,840 a year ago.

Quarterly revenue inched up 1.3% to RM8.82 million from RM8.7 million a year before, as its stockbroking segment’s revenue improved on an increase in margin income, placement feeds and commodities trading, despite a decrease in brokerage fees.

No dividend was declared for the quarter under review.

For the full-year of FY2024 ended Oct 31, its annual net profit grew by almost 68% to RM14.06 million from RM8.4 million a year ago. Revenue increased by nearly 19% to RM32.57 million from RM27.4 million last year. 

Mercury Securities’ share price rose 0.5 sen to 35 sen on Monday, bringing the group a market capitalisation of RM313 million. The stock is trading at a trailing twelve-month price-earnings ratio of 30.5 times, according to ASKEdge.