Malton 1Q net profit jumps four times on gain from a revoked deal

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KUALA LUMPUR (Nov 20): Malton Bhd saw its net profit for the first financial quarter ended Sept 30, 2017 (1QFY18) surge four times year-on-year to RM25.93 million, from RM6.26 million, after recognising a gain of RM23.8 million from a subsidiary, due to the revocation of a joint development agreement.

Its subsidiary Silver Setup Sdn Bhd had had on Oct 10, 2012, inked the JDA with Batu Kawan Development Sdn Bhd to jointly develop a plot measuring 300 acres in Seberang Perai, Penang. 

However, Batu Kawan decided on June 28 last year to sell the land to a unit of Eco World Development Group Bhd (EcoWorld), and asked Silver Setup to revoke and rescind the JDA for RM50 million, to be wholly satisfied by EcoWorld's unit.

Malton's quarterly revenue, however, slid 4% y-o-y to RM125.12 million, from RM130.04 million, on lower revenue from its property development division, its Bursa Malaysia filing today showed.

Going forward, Malton's board envisage the group to achieve satisfactory results for its FY18.

Malton shares slid 4 sen or 3.8% to RM1.01 today, for a market capitalisation of RM549.03 million.