Tuesday, November 12

AME net profit jumps 96 per cent in 1Q20

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AME is scheduled to be listed on the Main Market of Bursa Securities on October 14, 2019, at an issue price of RM1.30 per share. AME’s market capitalisation would be RM555.2 million upon listing.

KUCHING: Integrated industrial property solutions provider AME Elite Consortium Bhd (AME) reported a 96 per cent jump in net profit attributable to shareholders to RM13.1 million in the first quarter of the financial year ending 31 March 2020 (1QFY20).

This comes as it benefitted from higher demand for industrial properties resulting from Malaysia’s economic growth, in addition to investments in the manufacturing sector and ongoing US-China trade tensions.

The bottomline hike was almost double of the RM6.7 million recorded in the previous year’s corresponding quarter. Group revenue rose 60.8 per cent to RM94.4 million in 1Q20 compared to RM58.7 million a year ago.

Group managing director Kelvin Lee Chai said AME’s 1Q20 financial performance highlights its ability to ride the wave of incoming foreign direct investment from multinational corporations into Malaysia, in addition to local enterprises.

“This has given rise to improved sales and lease at our i-Parks on top of contributing to a higher recurring rental income stream through enhanced occupancy in the i-Stay workers’ accommodations and increased value of our investment properties,” he said in a statement.

“Therefore, we will continue to put our growth plans in motion, including expanding our industrial parks, developing facilities and services to enhance attractiveness, and increasing the capabilities in our engineering and property management segments to better serve our clients.”

AME is scheduled to be listed on the Main Market of Bursa Securities on October 14, 2019, at an issue price of RM1.30 per share. AME’s market capitalisation would be RM555.2 million upon listing.

From the total proceeds raised of RM111.1 million, RM69.1 million will be allocated for future industrial property development and investment projects, RM23 million will be utilised as working capital for the i-Park at Senai Airport City development, RM9 million will be set aside to complete the expansion of the Group’s precast concrete fabrication capacity, and the remaining RM10.0 million for the defraying of listing expenses.

Revenue from the property development segment increased to RM36.5 million from RM2.7 million previously. This was due to the sale of commercial shop lots and increase in sale of industrial properties.

In addition, revenue from the engineering services segment also rose by 175.7 per cent to RM11.8 million from RM4.3 million a year ago due to higher contributions from steel engineering works, precast concrete works as well as mechanical and electrical engineering works.

Construction services revenue amounted to RM40 million on near-completion of existing projects and newly-secured projects being in early stages of construction.

Notably, the group’s rental income from additional factory units leased by customers and additional workers’ dormitories that commenced in 1Q20, resulted in revenue from the property investment and management segment increasing 20.3 per cent to RM6 million from RM5 million previously.

In August 2019, AME completed the acquisition of a 76.59-acre parcel of land for RM135.1 million for the Phase 3 development of i-Park at Senai Airport City, bringing the total acreage of i-Park at Senai Airport City to approximately 189 acres. AME expects to commence the development of Phase 3 by the fourth quarter of FY20 after obtaining all relevant approvals for the construction.

Lee concluded: “Our positive financial performance in 1Q20 coupled with our upcoming listing and enhanced profile in the public eye positions us to capitalise on new market opportunities created by increasing FDI into the country.

“With the manufacturing sector a huge beneficiary, our strong track record in the customisation of manufacturing facilities should give us an edge in securing new contracts and clients.”