PROPERTY-BASED Meta Bright Group Bhd which is renowned for its four-star Grand Renai hotel in Kota Bharu (Kelantan) has showcased a period marked by strategic growth and diversification in its 2Q FY6/2024 ended Dec 31, 2023 despite facing increased operational costs due to pivotal investments.
The group reported a net profit of RM2.7 mil or an increase of 143% year-on-year (yoy) (2Q FY6/2023: RM1.11 mil) and and 627% quarter-on-quarter (qoq) (1Q FY6/2023: RM371,000).
Meanwhile, Meta Bright’s revenue stood at RM9.98 mil, a 25% surge from the previous year2Q FY6/2023: RM7.95 mil). The registered net profit reflects the company’s strategic execution in various sectors.
However, operational costs were higher during the quarter under review due to significant corporate activities and investments in business expansion which are primarily due to:
- Acquisition-related expenses for Kota Kinabalu-based ready mixed concrete manufacturer Expogaya Sdn Bhd (including professional fees and costs associated with an extraordinary general meeting).
- Development costs for its leasing business in Australia, including US$5 mil (RM23.89 mil) in loan expenses and professional fees.
- Increased depreciation following the completion of its latest phase of hotel renovation.
- Elevated food and beverage costs as the hotel sector looks to expand and grow this part of the business.
Despite these challenges, Meta Bright remains steadfast in its commitment to refining its business operations.
Its management is confident that the outcomes of these business development initiatives will become increasingly evident following the completion of several corporate exercises, including fundraising through debt and equity, business diversification and acquisitions.
In fact, the acquisition of Expogaya marks the group’s venture into the construction sector, aligning the company with the recovering Malaysian property market.
This not only solidifies the Meta Bright’s position in the construction sector but also ensures a steady supply of materials for its development projects, thus enhancing its competitive edge in the property development sector.
On the other hand, the expansion into Australia’s leasing business signifies the group’s commitment to sustainable practices in the mining industry and its capability to identify and capitalise on profitable opportunities in the global market.
The agreement with Mt. Cuthbert Resources Pty Ltd, a copper mining company in Australia, is expected to generate recurring monthly revenue of approximately A$223,000 (RM690,920). This move underlines Meta Bright’s capability to identify and capitalise on profitable opportunities in the global market.
In the hospitality sector, the Grand Renai @ Kota Bharu continues to be a significant contributor to Meta Bright’s revenue. The hotel’s recent renovations and enhanced that focused on its food and beverage (F&B) segment are designed to augment guest experience and improve operational efficiency.
As the Malaysian property market shows signs of recovery, Meta Bright’s strategic positioning in property development and the concrete business is expected to yield positive results in the company’s financial performance in upcoming quarters.
“Our strategic initiatives over the past few years are now beginning to bear fruit as reflected in our improved financial performance,” the group’s executive director (corporate & strategic planning) Derek Phang Kiew Lim pointed out.
“Our focus on sustainable and high-demand sectors, coupled with strategic acquisitions like Expogaya, positions us strongly for continued growth. We are confident in our future prospects as we continue to innovate and adapt in an ever-evolving market landscape.”
At 4.31pm, Meta Bright was unchanged at 13 sen with 3.44 million shares traded, thus valuing the company at RM426 mil. – Feb 28, 2024
