MALAYSIA - Malaysian Resources Corporation Berhad (MRCB) has reported a sharp decline in its third-quarter net profits, dropping by 93.84% to RM1.46 million compared to RM23.70 million in the same period last year. This significant downturn was also reflected in the company's revenues, which fell by 41.43% to RM503.74 million from RM860.02 million. Despite this, the company's engineering division continues to show resilience with a robust order book.
The drop in profits and revenues was attributed to the completion of major projects, including Sentral Suites in March and TRIA 9 Seputeh in May, which led to reduced contributions across the company's divisions. Sequentially, from the second quarter of 2023, profits slumped by 86.57% following the conclusion of the Tria Seputeh project.
Over the nine-month period, MRCB's performance reflected a nearly 60% profit drop and over a 22% decrease in revenue year-on-year. However, the company has laid out plans for recovery and growth. MRCB is gearing up for a series of property launches across Australia and Malaysia valued at RM1.5 billion for 2023 and is expanding into New Zealand and Malaysia with projects worth RM4 billion for 2024. These initiatives are part of the company's strategy to rebuild its construction tender book to RM30 billion, which includes significant redevelopments such as the Stadium Shah Alam and KL Sentral Station.
In addition to its property development endeavors, MRCB is looking to improve cash flow through the sales of unsold stock worth RM550 million. The engineering sector of the company is particularly promising, boasting an open tender book valued at RM30 billion. This is supported by an external client order book of RM26.1 billion (USD1 = MYR4.6810), which includes steady future contracts such as the LRT3 rail project, expected to be completed by the end of 2024.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.