Its revenue, however, had a major drop of 70.23% to RM6.92m

by ANIS HAZIM / pic source: melatiehsan.com.my

MELATI Ehsan Holdings Bhd’s net profit jumped 19.62% to RM750,000 for the fourth quarter ended Aug 31, 2023 (4Q23), from RM630,000 previously, mainly attributed to the profit of property development segment and construction projects.

Revenue, however, tumbled 70.23% to RM6.92 million from RM23.25 million in 4Q22, according to the group’s filing yesterday.

Earnings per share rose to 0.65 sen from 0.54 sen from the same period in the previous year.

The group did not declare any dividend for the current quarter under review.

On its construction division, it recorded a revenue of RM25.99 million and profit before tax of RM5 million compared to the preceding year of RM92.74 million and RM1.27 million, respectively.

Property segment recorded a revenue of RM75.39 million and profit before tax of RM16.99 million compared to the preceding year of RM18.63 million and RM580,000, respectively. 

“The improved performance of this segment was mainly attributed from the disposal of lands held for property development and sales recorded for the landed residential development known as Meridian at Taman Kluang Barat, Johor. In addition, shop offices at Pandamaran, Klang, were sold during the year,” it noted.

For financial year 2023 as a whole, Melati Ehsan said its net profit surged 734.64% to RM19 million from RM2.28 million a year earlier, while revenue fell 9% to RM101.38 million from RM111.42 million.

Noting the overall business conditions in 2022, the group is cautiously optimistic that its existing activities will continue to contribute positively to Melati Ehsan’s earnings. 

“However, we foresee a lower availability of new construction jobs in the local market and a more competitive tender environment,” it said.

Therefore, Melati Ehsan plans to focus on execution and timely completion of its existing orderbook.

On the property sector, the group said although the momentum should remain intact and chart a better performance as the market slowly regains some confidence and the economy starts to recover this year, the property overhang, stringent lending policies by banks and interest rate hikes issues is likely to linger in the near term.

Melati Ehsan’s share closed unchanged at 54 sen yesterday, valuing the group at RM65 million.