Amcorp Properties' 2Q net profit plunges 89% to RM1.83m

Amcorp Properties' 2Q net profit plunges 89% to RM1.83m
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KUALA LUMPUR (Nov 8): Amcorp Properties Bhd’s net profit for the second quarter ended Sept 30, 2016 (2QFY17) plunged 88.9% to RM1.83 million, from RM16.48 million a year earlier.

This was despite a 28.8% increase in revenue to RM52.97 million, from RM41.11 million in 2QFY16.  

The group, in a filing with Bursa, said its Malaysian property projects contributed RM33.6 million in revenue, and the renewable energy & contracting division contributed RM19.4 million.

Revenue from the Malaysia properties was mainly derived from sale of development properties (RM30.9 million) and rental income from investment properties (RM2.7 million), it added.

The renewable energy & contracting division revenue meanwhile came from ventilation and air conditioning contracts (RM15.7 million), coupled with power generation from both mini-hydro and solar projects (RM3.7 million).  

Amcorp Properties said for the first half of financial year (1HFY17), the group recorded a net profit of RM6.30 million — a decline of 91.4% from RM73.4 million in 1HFY16. Revenue rose 28.2% to RM96.80 million, from RM75.51 million.

“Profit before tax for financial year of RM16.3 million was mainly contributed from its oversea properties division, in particular from its joint venture in Japan,” it said.  

The board expects the overseas and Malaysia property projects to contribute positively to the group’s earnings in the current financial year.  

It said the board also expects the group’s operations to be profitable for the year.  

Amcorp Properties’ share price closed at 78.5 sen today, an increase of 2.61%, with about 116,000 shares exchanging hands. At this level, it is trading at a trailing P/E of 16.9 times, with a market capitalisation of RM456.9 million.