Mitrajaya's 1Q net profit jumps 55% on compulsory land acquisition

KUALA LUMPUR (May 26): Mitrajaya Holdings Bhd’s net profit jumped 55% to RM28.74 million for the first quarter ended March 31, 2017 (1QFY17), from RM18.46 million in 1QFY16, helped by a compulsory land acquisition.

Earnings per share increased to 4.29 sen, from 2.88 sen per share, the group said in a bourse filing today.

Revenue for the quarter rose 49% to RM291.43 million, from RM195.49 million a year earlier.

“The better financial results in this current quarter were mainly due to recognition of compensation sum received from compulsory land acquisition at Mukim Pengerang, Daerah Kota Tinggi, Johor.

“The wholly-owned subsidiary, Kemajuan Sekim Baru Sdn Bhd, has received second payment of RM10.90 million from the total sum offered of RM33.22 million,” said Mitrajaya.

Segmentally, its construction division and property development division saw better performance for the quarter, while its South Africa investment saw lower profit contribution.

Going forward, the group said the construction division will continue to be the main growth driver, backed by its outstanding orderbook of RM1.73 billion.

It expects higher contribution from its property development division, as the construction of Wangsa 9 Residency progresses. The division currently has RM204.31 million in unbilled sales.

Meanwhile, it expects lower revenue contribution from its investment in South Africa, as it is left with bigger plots that have higher selling prices. However, it expects better margins from the construction of houses.

Mitrajaya’s share price fell 1 sen or 0.7% to close at RM1.41, giving it a market capitalisation of RM943.92 million. — theedgemarkets.com

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