KUALA LUMPUR (Sept 14): Amcorp Properties Bhd sank into a deeper net loss of RM7.34 million for the first quarter ended June 30, 2021 (1QFY22) from RM867,000 a year ago.  

This came despite revenue increasing 25.4% to RM26.17 million for 1QFY22 from RM20.87 million in the previous year.  

The renewable energy and contracting division contributed RM18.2 million to revenue while its Malaysian properties division contributed RM8 million to revenue. 

The group said the higher net loss was a result of lower contribution from its overseas property division, whereby the preceding year's corresponding quarter included the sale of one unit penthouse in Burlington Gate, London, coupled with expenses incurred mainly from the selective capital reduction and repayment exercise. 

Notably, the company is undergoing a privatisation exercise via a selective capital reduction and repayment exercise after its major shareholders Amcorp Group Bhd, Clear Goal Sdn Bhd and Tan Sri Azman Hashim as well as AMPROP Trust proposed to undertake the company on May 7. 

The exercise is expected to be completed by the end of 3Q2022.

Going forward, the company expects the financial year to remain challenging. The group is not expecting any major disposals of project launches in the current financial year. 

“Nevertheless, the group will continue to be vigilant in its operating cash control and focus on completing and selling its development properties. 

"The renewable energy segment comprising solar and hydro concessions totalling 36MW will continue to contribute positive recurring earnings to the group’s results,” it said. 

Since the beginning of the year, Amcorp Properties has more than doubled. It gained traction after the privatization exercise was announced.  

The share price shot up after the privatisation exercise was announced, gaining 62.38% from 54.5 sen on May 6 to 88.5 sen at today's close. It has a market capitalisation of RM1.14 billion.