MRCB targets large infrastructure jobs
KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) expects its engineering, construction and environment businesses to contribute a larger share of revenue in 2018, as property development slows amid cooling demand in the market.
As of end of December, the group’s unbilled order book stood at RM5.2bil. The division currently has open tenders valued at RM2.755bil.
MRCB said it is placing greater emphasis on seeking infrastructure and long term fee based management projects.
“We have tendered for some very large infrastructure projects and we are eagerly awaiting the results,” group managing director Tan Sri Mohamad Salim Fateh Din said in a statement.
MRCB posted a net profit of RM167.6mil, or 6.56 sen a share for the full year ended Dec 31, 2017 (FY17) as revenue climbed to RM2.82bil.
Revenue from the engineering, construction and environment division doubled to RM1.77bil, boosting its operating profit to RM92.7mil.
Its 50% joint venture MRCB George Kent Sdn Bhd, the project delivery partner of for LRT 3 project contributed RM15.2mil in after tax profit.
The group’s property division recorded a total sales of RM1.42bil last year, higher than its original target of RM1.2bil.
Despite the stronger sales, revenue from the division dropped by almost a third to RM858.7mil, while profit declined to RM176mil.
“Overall, the group had total cumulative unbilled sales in its property development & investment which are expected to deliver RM1.71bil in revenue to be booked over the development lifespan of its projects,” MRCB said.
About 80% of the unbilled sales are residential units, while th remaining consisted of commercial properties.
MRCB has interests in 393 acres of urban land with a combined gross development value of RM55bil.
“2017 was a watershed year in MRCB’s transformation journey. Despite a challenging timeline, we successfully refurbished KL Sports City in Bukit Jalil in time for the 2017 SEA Games, and we significantly strengthened our balance sheet,” Mohamad Salim said.
MRCB had completed a RM1.732bil rights issue exercise in the last quarter of 2017.
Source: The Star
https://www.thestar.com.my/business/bus ... UYrcAb0.99