KUALA LUMPUR (April 24): Atlan Holdings Bhd’s (KL:ATLAN) fourth quarter net profit doubled, lifted by a RM16.76 million gain related to the compulsory acquisition of a subsidiary's land in Kedah by the government.

The company's net profit surged to RM11.66 million in the fourth quarter ended Feb 28, 2025 (4QFY2025) from RM5.07 million in 4QFY2024, though revenue dipped 17.77% to RM105.80 million compared to RM128.67 million, its bourse filing showed.

The sharp rise in net profit was mainly due to a RM16.76 million gain recognised from the RM69.6 million in compensation for the compulsory acquisition of two plots of land in Bukit Kayu Hitam, Kedah for a road project connecting the Bukit Kayu Hitam ICQS to Thailand’s CIQ Sadao facility. The land was owned by its 75.53%-owned Singapore-listed unit, Duty Free International Ltd. Atlan is challenging the compensation amount for the land.

The decline in quarterly revenue, meanwhile, was attributed to lower contributions from the group's duty free and automotive segments.

No dividend was declared for the current quarter under review

For the full year ended Feb 28, 2025 (FY2025), Atlan's net profit doubled to RM50.72 million from RM20.35 million in FY2024, while revenue grew 0.3% to RM455.12 million from RM453.56 million.

"The potential imposition of a 24% tariff by the United States on Malaysian exports would significantly impact Malaysia’s economy. Such trade uncertainty could also trigger ripple effects across the Malaysian automotive industry, further exacerbating market challenges," Atlan said.

Atlan expects the business environment to remain challenging, fuelled by rising production and operating costs, inflationary pressures and subdued consumer sentiment.

At Thursday’s market’s close, shares in Atlan remained flat at RM2.50, valuing the company at RM634.1 million.