MKH Bhd’s Q3 earnings surge 120% year-on to RM32.3mil

By THE STAR

KUALA LUMPUR: Property developer MKH Bhd’s earnings jumped 120% year-on-year to RM32.3mil in the third quarter of the financial year ending Sept 30, 2013.

It achieved this on improved revenues of 33.4% at RM185.36mil against RM138.96mil.

Year-to-date, MKH’s earnings stand at RM79.2mil versus RM47.1mil with basic earnings per share at 23.21 sen compared to 14.72 last year.

“The group achieved a good set of results, where our net profit attributable to shareholders in this nine-month period has even exceeded the net profit attributable to shareholders for the full financial year of 2012 of RM74.6mil,” commented MKH executive chairman Tan Sri Datuk Alex Chen Kooi Chiew.

“We are on track to deliver growth for the full financial year 2013, underpinned by the strong performance in both our core businesses of property development and oil palm plantation,” he said.

Revenue and operating profit from the property development segment grew 12.8% and 17.8% to RM309.3mil and RM77.4mil respectively. The division accounted for 65.8% of group revenue and 69.2% of group operating profit for the nine-month period.

“The solid performance from MKH’s property development segment was attributed to higher profit recognition from its current projects such as Pelangi Semenyih 2 and Hillpark Homes 2 within Kajang/Semenyih, and Saville@Melawati, Pelangi Seri Alam & Saville@ThePark, Bangsar in the other parts of Greater KL.

MKH has continued to enjoy a healthy sales trend, chalking up RM454.7mil new sales in the first nine months of the current financial year, surpassing the previous year’s total new sales of RM423.7mil. Contributing projects included Pelangi Semenyih 2, Kajang 2, Pelangi Seri Alam, Hill Park Homes 2, Saville@ThePark in Bangsar and MKH Boulevard.

Its recent acquisition in Puncak Alam has also served to further strengthen its development presence in Greater KL, doubling its undeveloped landbank to more than 1,000 acres, and raising Gross Development Value to nearly RM7bil.

Meanwhile, MKH’s plantation division will record its maiden year of profits. For the first nine months, the plantation division achieved revenue of RM76.1mil and operating profit of RM20.3mil, compared to operating loss of RM12.0 million in the corresponding nine-month period in 2012.

“Our plantation division will continue to grow in significance, buoyed by improving fresh fruit bunch yield on the group’s mature and immature oil palm from the 15,000ha that was planted in 2008. Our plantation mill is currently enjoying an extraction rate above 20%, which should improve further as production increases and we achieve greater economies of scale.

“Going forward, we will strive to achieve an even contribution between our two core businesses of property development and oil palm plantation,” Chen concluded.

– Malaysia Property News

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