KUALA LUMPUR, Feb 26 — Malaysian Resources Corporation Bhd (MRCB) is expecting a stronger revenue recognition in 2020 as construction progresses at key property projects and completed 1060 Carnegie residential units in Melbourne are handed over.
Group managing director Imran Salim said MRCB had RM1.6 billion of unbilled property sales yet to be recognised.
“Moving forward we will leverage on our new MRCB Building System, a proprietary modular technology which will enhance our product delivery, lower our dependence on labour and significantly reduce construction time, resulting in improved margins in the long run,” he said in a statement today.
MRCB recorded a higher pre-tax profit of RM20.43 million in its fourth quarter ended Dec 31, 2019, from RM7.70 million in the same quarter of the previous year.
Concurrently, revenue was up at RM471.63 million from RM374.11 million previously.
For full-year 2019, profit before tax dropped to RM52.96 million from RM122.99 million compared to 2018, while revenue stood at RM1.32 billion from RM1.87 billion.
MRCB attributed the downtrend due to the group’s significant high-rise residential property projects being in their early phase of construction when revenue recognition was minimal.
In addition, income recognition from the Light Rail Transit Line 3 (LRT3) project was also considerably lower as a result of its re-timing and remodelling from a project delivery partner (PDP) to a fixed price turnkey project.
MRCB’s property development & investment division recorded a lower revenue of RM566.7 million in 2019 compared to RM1 billion in 2018 due to the one-off land sales recorded in the previous year.
The main revenue contributors were the Sentral Suites, 9 Seputeh and MyIPO office tower developments, as well as the completed Malaysia Building Society Bhd office tower, Sentral Residences and Kalista Park Homes projects.
“Revenue and operating profit will continue to be progressively recognised in line with construction progress, with Sentral Suites and TRIA at 9 Seputeh, targeted to reach 50 per cent and 40 per cent construction completion respectively by the end of 2020,” it said.
Meanwhile, the engineering, construction & environment division recorded revenue of RM679.5 million, mainly driven by MRT Line 2 Package V210, Damansara-Shah Alam Highway (DASH) Package CB2, Employees Provident Fund headquarters at Kwasa Sentral and SUKE Expressway Package CA2. — Bernama