MK Land posts highest quarterly profit in six years as property income jumps

MK Land posts highest quarterly profit in six years as property income jumps
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KUALA LUMPUR (Sept 27): MK Land Holdings Bhd's net profit soared 275.9% to RM13.27 million for the quarter ended June 30, 2021 (4QFY21), from RM3.53 million a year earlier, supported by a jump in other operating income, particularly from its property development segment.

It was the property group's highest quarterly profit since 4QFY15, when it booked a net profit of RM16.62 million on revenue of RM145.51 million.

Quarterly earnings per share came in at 1.1 sen, from 0.29 sen in 4QFY20, the group's bourse filing showed.

The group, which is also involved in leisure business as well as education, achieved the better performance despite incurring a higher tax in the quarter.

Revenue fell 29.54% to RM21.19 million, from RM30.08 million in 4QFY20, as revenue from the property development division fell 34%, while the leisure division's revenue rose.

"Revenue is mainly generated from the sale of properties and construction progress from the projects in Damansara Damai, Taman Bunga Raya (in central region) and Klebang Putra (in northern region)," it said.

The improved quarterly results helped lift MK Land's full-year net profit for FY21, which came in at a three-year high of RM20.32 million or 1.69 sen per share.

This is 92.38% higher than the RM10.56 million or 0.88 sen per share profit registered in FY20, thanks to a lower tax incurred.

The better performance was despite full-year revenue falling 6.4% to RM186.27 million, from RM199.01 million in FY20, due to lower revenues across all segments.

On prospects, MK Land said it will continue to focus on the sales of its products and the timely completion of its ongoing projects, leveraging on the lower interest rates as well as the government stimulus packages.

"The group remains cautious on new launches (other than affordable housing) and expects performance to be challenging for FY22," it said.

Shares of MK Land rose half a sen or 2.44% to 21 sen on Monday, valuing the group at RM247.49 million.

S Kanagaraju