KUALA LUMPUR (Aug 26): Property developer NCT Alliance Bhd (KL:NCT) posted a 48.1% year-on-year drop in its second-quarter net profit, despite a surge in revenue, as higher incentives offered to boost sales of completed units ate into its margins.

The group's net profit for the quarter ended June 30, 2025 (2QFY2025), dropped to RM4.99 million from RM9.62 million, its bourse filing showed.

While revenue jumped 52.1% to RM106.9 million from RM70.27 million in 2QFY2024 — primarily driven by the completion of unit sales at Grant Ion Majestic and its ongoing project Ion Belian Garden — its cost of sales also spiked, rising by RM50.94 million to RM86.59 million from RM35.65 million.

No dividend was declared for the quarter.

For the first six months of FY2025, NCT Alliance’s net profit fell 60.8% to RM8.58 million from RM21.87 million in the corresponding six months in FY2024, even as cumulative revenue edged up to RM159.95 million from RM158.6 million.

The group attributed the decline in cumulative profit to lower profit margins from its existing projects in the period under review.

In the remaining half of FY2025, NCT Alliance expects its launch pipeline to boost revenue. Upcoming launches include Phase 1 of its maiden development in Sabah, Ion Borneo Garden, Phase 3 of Ion Belian Garden and Ion Marina Bay.

“In addition, as part of the group’s strategy to grow its investment property portfolio, the group is also expected to commence development of its maiden Centralised Labour Quarter project located in Batu Kawan, Penang, in the second half of 2025,” it added.

Shares in NCT Alliance ended half a sen or 1.01% lower at 49 sen, valuing the company at RM956.04 million.