MCT's net profit drops 8.3% in 1Q

by **Cals** Tue 01 Dec 2015, 00:32

MCT's net profit drops 8.3% in 1Q

By Danial Idraki / theedgemarkets.com | November 30, 2015 : 8:24 PM MYT

KUALA LUMPUR (Nov 30): [size=16]MCT Bhd posted a net profit of RM15.46 million or 1.16 sen per share for the first quarter ended Sept 30, 2016 (1QFY16), 8.3% lower against RM16.86 million or 1.63 sen per share registered a year ago, due to substantially higher tax provision.

In a filing to Bursa Malaysia, the property developer said the provision for effective tax rate of 8% for the previous corresponding quarter was much lower, due to over provision of tax in the financial year ended June 30, 2014.

Quarterly revenue grew 62.8% to RM185.45 million, from RM113.92 million, mainly derived from its property development segment.

“Property development contributed approximately 83% of total revenue for the current quarter, while construction segment contributed approximately 10% to the group’s revenue,” its filing showed.

Moving forward, MCT expects the property market to remain soft during the remaining part of current financial year, and it has taken measures such as focusing on a product mix that meets current market pricing requirements, with the bulk of launches being priced below RM700,000.

“The group has total unbilled sales of RM2 billion, which together with new launches that are planned to take place during the current financial year, will translate to a steady flow of revenue and profits,” the group said.

MCT gained nine sen or 7.1% at RM1.38 today, with 1.77 shares traded. Its share price gave it a market capitalisation of RM1.72 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
[/size]