MAIN market-listed property developer Ageson Bhd posted a 275% surge in its net profit for 1Q FY6/2022 ended Sept 30, 2021 to RM19.06 mil (1Q FY6/2021: RM5.07 mil) from a revenue of RM52.4 mil or 144% higher from RM21.5 mil a year ago.
The higher revenue was achieved mainly on the back of higher billing recognised from the trading of construction materials. The surge in net profit, on the other hand, was due to better operating profit and bargain purchases arising from an acquisition of a company during the financial period under review.
Following its positive results, the company’s basic earnings per share have almost tripled to 1.48 sen during the quarter under review from 0.57 sen in the corresponding period last year.
“The construction division was the sole earnings contributor during the quarter as the property development division was impacted by extension of the movement control order (MCO 3.0) imposed by the Malaysian authorities,” commented Ageson’s executive director Datuk Seri Chin Kok Foong.
“The strong momentum in earnings is expected to continue into the next few months as we see a high volume of construction material trading, mainly due to the increase in pricing.”
Moreover, Chin is also optimistic of a recovery of the construction sector following a re-opening of the economy and the high vaccination rate seen in Malaysia.
“We’re very optimistic on our earnings growth going forward as the Government has continued to introduce stimulus packages that are supportive of the economic recovery,” he noted.
“Our next focus will be our recent collaboration with China’s Zhejiang Group, a conglomerate company based in Hangzhou, Zhejiang.”
According to Chin, the sale and development will create synergistic opportunities and benefits to both parties by leveraging and tapping on each other’s strength, experience, network and expertise in construction.
“Such development will provide earnings visibility for the group over the next few years while also expanding the group’s income base through the development of built-to-suit industrial space,” he projected.
“We understand that the first stage of the development is to build an Economic Industrial Park to integrate the ecosystem.”
At 9.45am, Ageson was unchanged at 5.5 sen with 25.34 million shares traded, thus valuing the company at RM71 mil. – Nov 25, 2021
