PETALING JAYA: Construction and property firm Malaysian Resources Corp Bhd (MRCB) registered strong growth in revenue that rose 55% to RM1.28bil for the first half of 2017 compared with the same period a year ago mainly driven by contributions from the engineering and construction segment.
Net profit during the first six months was RM33.83mil compared with RM49.89mil in the same period a year ago.
Profit before tax excluding gains of RM44.4mil arising from the disposal of non-core assets in the first half of 2016, rose 32% to RM63.4mil.
MRCB posted a net profit of RM23.37mil for the second quarter ended June 30 against RM45.50mil in the same quarter a year ago on revenue that surged 94.38% to RM756.52mil.
Group managing director Tan Sri Mohamad Salim Fateh Din said the company was pleased with the results.
“The strong growth in revenue was driven by a 110% rise in our engineering, construction and environment revenue.
“Our property development and investment division recorded a 29% increase in revenue, contributed by the award-winning Sentral Residences and our Eastern Burwood Development in Melbourne,” Mohamad Salim said in a statement.
He noted that with the two key property development projects completed now and new projects still in the early phase of construction, revenue would continue to be dominated by its engineering, construction and environment division this year.
The company’s property development segment also recorded revenue and profits from its on-going property development projects, namely the 9 Seputeh mixed project in Jalan Klang Lama, the office towers at PJ Sentral Garden City and Menara MRCB in Putrajaya.
Meanwhile, the recurring income of RM5.9mil was derived from its investment properties in KL Sentral CBD and Shah Alam.
MRCB’s property projects, predominantly transtit-oriented developments, have a gross development value of RM55bil.
The company’s engineering, construction and environment division’s revenue was also derived from ongoing construction of MRCB Land’s property development projects and several mixed commercial buildings for clients in Johor, power transmission-related construction projects across Peninsular Malaysia and other civil engineering projects in the Klang Valley.
Contribution from 50%-owned MRCB-George Kent Sdn Bhd, the project delivery partner for the LRT3 line, was still very low, but would show much stronger growth in the second half of the year as the project progresses.
MRCB said after RM409mil worth of recent contract wins, the company’s external client construction order book currently stood at RM6.3bil.
