KUALA LUMPUR (May 29): Perak Corporation Bhd (KL:PRKCORP) posted a significant surge in first-quarter profit amid progress in the implementation of the company's regularisation plan and subsequent upliftment from Practice Note 17 (PN17) status.
Net profit for the quarter ended March 31, 2026 (1QFY2026) surged to RM6.86 million or 6.86 sen per share from RM132,000, or 0.13 sen per share a year earlier, the company's Bursa Malaysia filing on Friday showed.
The increase, the company said, was driven by higher contributions from its port and logistics and property development segments, as well as impairment reversals following its transition to a going concern basis.
Revenue for the quarter rose 63.9% to RM61.08 million from RM37.26 million in 1QFY2025, mainly due to stronger contributions from the port and logistics as well as property development segments, partially offset by weaker hospitality and tourism revenue.
No dividend was declared for the quarter under review.
Bursa Malaysia had approved Perak Corp's proposed regularisation plan on Jan 19, while shareholders approved the plan at an extraordinary general meeting on Feb 27.
Perak Corp said the regularisation plan is currently ongoing and represents a significant milestone in the company’s corporate restructuring and financial regularisation efforts.
"The regularisation plan is intended to strengthen the group’s financial position through, amongst others, the monetisation of identified assets, settlement and reduction of legacy financing obligations, enhancement of shareholders’ equity position, improvement of liquidity and cash flow position, as well as the stabilisation of the group’s operational sustainability," the company said.
"The company believes that the successful implementation of the regularisation plan will further strengthen the group’s financial condition, improve operational sustainability, and support the eventual upliftment of the company’s PN17 status," it added.
Following the approvals obtained and commencement of the implementation of the regularisation plan, Perak Corp said it had reassessed the appropriateness of preparing its financial statements on a going concern basis.
The port and logistics segment recorded revenue of RM36.25 million, up 17.2% from RM30.94 million a year earlier, driven by higher throughput at Lumut Maritime Terminal and Lekir Bulk Terminal.
The property development division posted revenue of RM18.94 million, compared with nil in 1QFY2025, arising mainly from land monetisation activities.
"Other projects remain in the early stages of planning and development. The group is in the process of building a stronger project pipeline to position the property development segment for sustainable growth in the medium to long term," Perak Corp said.
Meanwhile, the hospitality and tourism segment recorded lower revenue of RM5.99 million against RM6.42 million previously.
Perak Corp said it recognised impairment reversals totalling RM5.1 million during the quarter, comprising RM3.69 million relating to property, plant and equipment and RM1.4 million relating to right-of-use assets.
Total borrowings stood at RM217.35 million as at March 31, marginally up from RM215.2 million as at Dec 31, 2025.
The company’s current liabilities exceeded current assets by RM43.9 million as at March 31, improving from RM53.1 million a year earlier.
Shares in Perak Corp closed unchanged at 45 sen on Friday, with a market capitalisation of RM45 million. Year to date, the counter is down 39.2%.