MALAYSIAN Resources Corporation Bhd’s (MRCB) net profit for the financial year ended December 31, 2022 (FY2022) rose to RM64.85 million from RM15.83 million a year ago.

Revenue increased 121% to RM3.21 billion from RM1.45 billion previously.

In a filing to Bursa Malaysia today, the company said the strong recovery in revenue was mainly due to more normalised operations after two years of Covid-19-related disruptions. This resulted in increased revenue from higher construction progress across both the engineering, construction and environment (ECE) division as well as the property development and investment division, and a recovery in overall property sales.

It said the much higher revenue also reflected the full-year consolidation of the Light Rail Transit 3 project company, Setia Utama LRT3 Sdn Bhd (SULSB).

“In addition to the contribution from SULSB to the ECE division, higher operating profits came from the property development and investment division in 2022. This was a result of much better construction progress and sales from the division’s completed unsold inventory and sales of units from ongoing property development projects under construction.

“The group’s 27.94%-owned Sentral REIT and associated company, Sentral REIT Management Sdn Bhd, contributed a combined profit after tax of RM14.9 million to the group compared with RM17.8 million in FY2021,” it said.

Moving forward, MRCB said its major source of revenue and operating profits would come from property development and investment as well as the ECE divisions.

As at December 31, 2022, the property development and investment division retained its highest sales trajectory and sold RM487.9 million worth of properties from its completed and ongoing developments.

“The company’s immediate priorities remain on enhancing cash flow by monetising its inventory of unsold completed stock, which stood at RM227 million on December 31, 2022, and looks forward to improved sales from foreign buyers with the opening of borders, particularly for their Sentral Suites, Vivo 9 Seputeh developments and St Regis residential units.

“With interests in 465.81 hectares of urban land with gross development value of RM33 billion, the group has a sustainable supply of long-term land for future projects. The division has cumulative unbilled sales of RM536.5 million, which will be recognised progressively over the construction period of the development projects,” it shared.

As for property development and investment, MRCB said the division will continue to earn a relatively stable income stream from its remaining investment property from Celcom Tower and its stake in Sentral REIT.

The ECE division continues to actively tender for more infrastructure contracting projects to replenish its order book, but there have been very few new large infrastructure construction projects put out to tender, it said.

The division’s open tenders stood at RM30 billion as at December 31, 2022, it added. – Bernama, February 20, 2023.