KUALA LUMPUR (May 24): Menang Corp (M) Bhd’s net profit for the third quarter ended March 31, 2022 (3QFY22) surged 187.89% or more than two-fold to RM4.54 million from RM1.58 million a year ago, despite posting a dip in revenue.

The group’s bourse filing on Tuesday (May 24) showed that its 3QFY22 revenue slipped 2.21% to RM21.51 million, from RM21.99 million.

Menang Corp said the improved net profit for the quarter under review was due to proactive measures undertaken to reduce the overall operating costs by RM0.78 million.

Additionally, it added that the receipt of late payment interest of RM1.54 million from Lembaga Lebuhraya Malaysia (LLM) in respect to the compulsory acquisition of Klang Land by the government, lower interest expenses of RM1.3 million due to loan repayments made and reversal of over provision of prior years’ income tax of RM0.95 million, carried the group’s net profit.

The group is involved in property development and concession arrangements, among others.

Compared to the immediate preceding quarter, Menang Corp’s net profit ballooned 168.96% from RM1.69 million in 2QFY22, while revenue was down marginally by 1.15% from RM21.76 million.

The group noted that the q-o-q net profit improvement was mainly due to the aforementioned receipt of payment interest from LLM, lower interest expenses due to loan repayments made and income tax adjustments.

On its prospects, Menang Corp noted it remains steadfast in the management of its private finance initiative (PFI) concession businesses and continue its resilient results.

“The board and management are committed to its strategic priorities to improve its financial position, identify new development projects for its landbanks and merger and acquisition (M&A) opportunities, and at the same time build new capabilities and revenue streams," the group said.

Menang Corp shares finished three sen or 5.31% lower at 53.5 sen on Tuesday (May 24), giving the group a market capitalisation of RM265.5 million.