KUALA LUMPUR (June 22): Keladi Maju Bhd’s net profit tripled to RM8.79 million or 1.16 sen a share for the first financial quarter ended April 31, 2015 (1QFY16) from RM2.92 million or 0.38 sen a share a year ago, mainly due to higher contribution from its property development segment.

Revenue was also higher, tripling to RM24.74 million from RM7.93 million in the previous corresponding quarter.

“The higher recognition of revenue and profit before tax were mainly due to improved sales activities and construction progress billings achieved. 

“During the quarter under review, a built then sell project comprising 236 units of terrace houses in Phase 4B2 of Taman Lagenda was completed with approval of Certificate of Completion and Compliance (CCC) and achieved 100% sales rate,” it said in a filing with Bursa Malaysia today.

Meanwhile, its palm oil cultivation division posted a 6% rise in pre-tax profit to RM501,000 from RM471,000 a year ago, on the back of an 18% rise in revenue to RM844,000.

According to Keladi Maju, 2015 will be a challenging year due to the depreciation in value of the Ringgit, the slump in crude oil price and inflationary effect due to implementation of the goods and services tax dampening consumer spending pattern.

“Nevertheless, all the group’s projects which are in progress at Taman Lagenda and Taman Desa Cinta Sayang are expected to contribute positively to the earnings of the group for the remaining period of the financial year,” said the property and plantation group.  

Keladi Maju said it will continue to embark on development of affordable and saleable properties from its existing development land banks.

“With diligent development planning together with the steady smooth implementation, the prospects of the group remain bright,” it added.

Keladi Maju (fundamental: 1.65; valuation: 1.8) shares were untraded at 28 sen today, giving it a market capitalisation of RM212.33 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)