clock 29-05-2024
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NCT Alliance Reports Strong Start to FY2024 With 76% Growth in PAT

NCT Alliance Berhad (“NCT Alliance” or “the Group”) reported a strong start to the financial year, posting significant gains in both profit and revenue for the first quarter ended 31 March 2024 (Q1 FY2024).

The Group’s profit after tax (“PAT”) of RM12.3 million, marked an impressive 76% increase from RM7.0 million in the same quarter last year. Profit before tax (“PBT”) increased by 86% to RM17.3 million from RM9.3 million in the same period. This growth in profitability is complemented by a 61% increase in revenue, which reached RM88.3 million, up from RM55.0 million in Q1 FY2023.

The improved performance was primarily attributed to robust contributions from the Grand Ion Majestic and Acacia Residences projects. The timely completion complemented by secured sales at these developments were key growth drivers this quarter.

As a result of the improved contribution, NCT Alliance was able to further pair down its project bridging loans and other borrowings, significantly strengthening its balance sheet and effectively halving its net gearing ratio from 14% at the end of Q4 FY2023 to 7%. With this enhanced financial flexibility, NCT Alliance is better positioned to capitalise on new opportunities.

To this end, on 29 February 2024, NCT Alliance entered a conditional share sales agreement with NCT Venture Corporation Sdn Bhd. This agreement pertains to the acquisition of the entire equity interest in NCT Builders Group Holdings Sdn Bhd (“NBGH”) for a total consideration of RM100.89 million.

This strategic proposed acquisition will provide access to approximately 140 acres of landbank for development, enabling NCT Alliance to diversify its property projects from residential to commercial. This will also further boost the Group’s financial position, as the remaining gross development value (GDV) of RM604.3mill arising from its existing project will be increased to approximately RM2.4 billion in aggregate.

Additionally, NCT Alliance has proposed to acquire 10 parcels of leasehold development land in the District of Penampang, Sabah. The land, totalling approximately 11.16 acres, will be acquired by NCT Borneo Sdn Bhd (NBSB), a wholly-owned subsidiary of NCT Alliance, for a consideration set at RM36.0 million.

This strategic land acquisition is expected to expand NCT Alliance's development footprint in east Malaysia and enhance its future growth prospects, with an expected GDV of RM 480 million to be generated from the proposed development.

The proposals are subjected to shareholders’ approval at the forthcoming Extraordinary General Meeting (EGM) scheduled to be held on 19 June 2024.

Dato’ Sri Yap Ngan Choy, Executive Chairman and Group Managing Director of NCT Alliance, stated, “We are pleased with our performance in the first quarter. Our strategic project deliveries for Grand Ion Majestic and Acacia Residences have driven substantial increases in both profit and revenue. We were able to capitalise on this momentum by significantly improving our financial position, lowering our net gearing ratio and increasing our balance sheet strength, allowing us to further capitalise on investment opportunities"

"Building on this solid financial foundation, we are actively expanding our portfolio through the strategic proposed acquisition of NBGH and the development lands in Sabah. These investments are pivotal to our growth strategy, aimed at broadening our market reach and fortifying our long-term prospects in order to deliver improved shareholder value."

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