MCT Completes Turnaround With RM13.6 Million Net Profit In 4Q22
PETALING JAYA: Emerging property developer MCT Berhad (MCT) completed the turnaround of its financial performance for the financial year ended December 31, 2022 (FY2022) by recording RM13.6 million net profit in the fourth quarter of the financial year ended December 31,2022 (4Q2022).
The higher net profit in 4Q22 was achieved despite revenue moderating by 12.2% to RM76.5 million from RM87.1 million in the previous corresponding quarter as the result of enhanced operational efficiency from the cost savings in constructions expenses. The reduced top-line was mainly attributed to slower construction progress as the majority of the projects are at the infancy stages of the construction timeline.
With the higher net profit in 4Q22, the Group wiped-out the losses recorded in the first half of FY2022 and posted a net profit of RM0.5 million for FY2022 on revenue of RM224.9 million compared to a net loss of RM16.2 million recorded in 2021.
MCT CEO Teh Heng Chong said, “The turnaround of our financial performance to be back in the black in FY2022 reflects the success of the strategies implemented to streamline the Group’s operations despite the challenging operating conditions.
In tandem with the nation’s economic recovery, the Group launched four new projects in FY2022 with a total gross development value of RM784.3 million. The positive response to these new launches saw our net sales in FY2022 increasing by 13% to RM496 million from RM440 million in FY2021 on the back of the success of Alira @ Metropark Subang, Aetas Damansara and Casa Bayu.
In addition, the Group’s unbilled sales as at December 31, 2022 also rose 39.0% to RM720.0 million from RM518.0 million in 2021, providing earnings visibility over the coming years.”
In August 2022, the Group acquired a 4.0-acre land in Bangi for RM31.5 million which is slated for launch in 1Q2024 with an estimated gross development value (GDV) of RM404.2 million. The Group also recently announced the acquisition of a 1.6-acre land in Seputeh, Kuala Lumpur for RM58.0 million with an estimated GDV of RM320.0 million.
Speaking on the Group’s outlook for 2023, Teh said “We want to maintain the positive momentum coming out from the Covid-19 pandemic. As we chart our growth plans, we will continue to seek out land banking opportunities with strong value propositions across the Klang Valley to enhance the Group’s future prospects.”
“We remain optimistic of our business prospects supported by our pipeline launches of at least three new projects in FY2023. Underpinned by our robust unbilled sales and contributions from our launches, we are confident of a positive growth trajectory and record a profit for FY2023,” he added.