AME Elite posts lower 2Q net profit on absence of fair value gain

TheEdge Thu, Nov 23, 2023 08:46pm - 3 months View Original

KUALA LUMPUR (Nov 23): AME Elite Consortium Bhd posted a 52.34% drop in its second quarter net profit ended Sept 30, 2023 (2QFY2024) to RM21.83 million or 3.42 sen per share due to the absence of fair value gain on investment properties. 

In comparison, the group recorded a net profit of RM45.81 million or 7.15 sen per share in 2QFY2023 due to the gain from the sale of industrial properties to AME Real Estate Investment Trust. 

Meanwhile, revenue climbed 58.23% to RM233.34 million from RM147.47 million a year earlier, boosted by property development, engineering services rental, surface and income as well as sale of goods. 

In addition, AME Elite generated a share of profit of RM158,000 for the quarter compared to a share of loss of RM30,000 from the equity accounted joint ventures in the previous year due to the revision of costs for the completed projects.

It declared a two sen dividend for the quarter, payable on Jan 5, 2024. 

For the six months of FY2024, AME Elite’s net profit fell 13.09% to RM45.1 million from RM51.9 million, although revenue jumped 60.3% to RM455.85 million from RM284.36 million. 

On prospects, AME Elite said it will continue to develop the i-Park @ Senai Airport City, now in Phase 3, to improve its profitability.

Taking into account possible changes in the business landscape in light of economic challenges at the macro level, the group continues to look for suitable land parcels to replicate its i-Park model in the central and northern regions of Peninsular Malaysia.

“We have experienced strong demand for our industrial properties, as well as growth in rental income and value of our investment properties. We have also been able to attract more multinational corporations (MNCs) to operate in our industrial parks which we believe has helped to attract other MNCs and local enterprises to purchase or lease property units within our industrial parks.

“Overall, the board of directors expects the group to achieve satisfactory financial performance for FY2024 [ending March 31],” said the group. 

Shares of AME Elite finished up two sen or 1.28% at RM1.58 on Thursday, valuing it at RM1.01 billion.

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