KUALA LUMPUR: Property player Meta Bright Group Bhd (MBG) posted a net profit of RM2.7 million, representing an increase of 143 per cent year-on-year (YoY) for the second quarter (Q2) ending June 30, 2024 (FY24) from RM1.11 million posted in the same quarter last year.
The net profit reflects the company’s strategic execution in various sectors.
However, operational costs were higher this quarter due to significant corporate activities and investments in business expansion.
The company’s revenue stood at RM9.98 million, a 25 per cent increase from RM7.95 million posted last year.
Executive director of corporate and strategic planning Derek Phang Kiew Lim said the company’s strategic initiatives over the past few years are now beginning to bear fruit, reflected in its improved financial performance.
“Our focus on sustainable and high-demand sectors, coupled with strategic acquisitions like Expogaya Sdn Bhd, positions us strongly for continued growth.
“We are confident in the prospects of MBG as we continue to innovate and adapt in an ever-evolving market landscape.
“We remain confident that our efforts will lead to sustainable growth and enhanced shareholder value,” he said in a statement.
The company’s increased costs are primarily due to the acquisition-related expenses for Expogaya Sdn Bhd, including professional fees and costs associated with the extraordinary general meeting.
Further, increased costs also from the development costs for the leasing business in Australia, including US$5 million (around RM23.89 million) in loan expenses and professional fees.
Further, the company was also impacted by the increased depreciation following the completion of the latest phase of the Grand Renai Hotel renovation.
Also, there are elevated food and beverage costs as the hotel sector looks to expand and grow this part of the business.
Despite these challenges, MBG remains steadfast in its commitment to refining its business operations.
The company is confident that the outcomes of these business development initiatives will become increasingly evident following the completion of several corporate exercises, including fundraising through debt and equity, business diversification, and acquisitions.
The acquisition of Expogaya marks the company’s venture into the construction sector, aligning the company with the recovering Malaysian property market.
This acquisition solidifies the company’s position in the construction sector and ensures a steady supply of materials for its development projects, enhancing its competitive edge in property development.
On the other hand, the expansion into the leasing business in Australia signifies a commitment to sustainable practices in the mining industry and its capability to identify and capitalise on profitable opportunities in the global market.
This division entails an agreement with Mt Cuthbert Resources Pty Ltd, a copper mining company in Australia, which is expected to generate recurring monthly revenue of approximately AUD$ 223k.
This move underlines MBG’s capability to identify and capitalise on profitable opportunities in the global market.
In the hospitality sector, the Grand Renai Hotel continues to be a significant contributor to its revenue.
The hotel’s recent renovations and enhanced focus on the food and beverage segment are designed to augment the guest experience and improve operational efficiency.
As the Malaysian property market shows signs of recovery, MBG’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.
