KUALA LUMPUR (Feb 28): Malaysian Resources Corp Bhd (MRCB) exceeded its sales target of RM1.2 billion last year, to hit RM1.4 billion. This was largely contributed from its Sentral Suites development in KL Sentral and 1060 Carnegie development in Melbourne.

Unbilled property sales at the end of 2017 stood at RM1.71 billion. It has a land bank of 393 acres, with an estimated gross development value of RM55 billion.

The property and construction company reported a 43.8% drop in net profit to RM105.65 million in the fourth quarter ended Dec 31, 2017 (4QFY17) from RM188.08 million a year ago, on lower contribution from the property development and investment division.

MRCB said this was due to the completion of Sentral Residences in KL Sentral and its Easton Burwood development in Melbourne very early in FY17, and new replacement projects still being in the early phase of construction where sales recognition is still minimal.

There was also the absence of a previous one-off gain of RM242.6 million from the sale of Menara Shell and other assets in 2016 compared with only RM60.8 million in gains recognised in 2017.

This resulted in lower earnings per share of 4.82 sen in 4QFY17 compared with 8.92 sen in 4QFY16. Quarterly revenue also fell 60.4% to RM408.16 million from RM1.03 billion in 4QFY16.

Nevertheless, the group is proposing a first and final dividend of 1.75 sen per share amounting to RM76.8 million for the financial year ended Dec 31, 2017 (FY17), subject to approval of shareholders at the forthcoming annual general meeting.

The weak quarterly performance dragged down the group's net profit for full-year FY17 by 37.3% to RM167.58 million from RM267.36 million in FY16.

Revenue, however, was up 17.3% to RM2.82 billion from RM2.41 billion the previous year, mainly due to contribution from the engineering and construction division.

MRCB said the engineering, construction and environment division's revenue jumped 106.8% year-on-year to RM1.8 billion in FY17.

Going forward, MRCB group managing director Tan Sri Mohamad Salim Fateh Din said the group has tendered for some very large infrastructure projects and is awaiting the results.

MRCB shares close down four sen or 3.57% to RM1.08 today, with 4.17 million shares traded, bringing a market capitalisation of RM4.96 billion.