MKH Berhad reports its 2021 financial results, albeit a challenging period it went through the group recorded a commendable performance with a profit before tax increasing by 38% compared to RM161.1 million it achieved in 2020. The group achieved revenue of RM913 million for the year a slight increase from 2020, however, the last 2-year performance has been a stark difference from 2019 when the group revenue passed the RM1 billion mark.
Moving ahead the group says it will continue to leverage on the strong demand for affordable housing emphasising affordable pricing, good location, and the right product mix. For FY2021, the Property Development and Construction Division recorded lower revenue and PBT of RM509.0 million and RM36.2 million.
In line with the good demand for transit-oriented urban development model (“TOD”), MKH has been developing TOD projects that are well-located along the Klang Valley transit system such as Nexus @ Taman Pertama in Cheras, MKH Boulevard 2 in Kajang as well as other development in Kuala Lumpur.
As of September 2021, the Group recorded an unbilled sales value of RM947.2 million that was mainly attributable to new and ongoing property development projects. The Plantation Division recorded substantially higher revenue and profit before tax of RM294.5 million and RM101.9 million respectively mainly due to higher average crude palm oil (“CPO”) selling price and inclusion of unrealised foreign exchange gains of RM8.0 million.
MKH is optimistic that crude palm oil price will remain well supported in 2022 with the current CPO price trading above RM4,000/MT in Indonesia. This is due to continued good demand and tighter global palm oil stocks, due to wet weather impact and labour constraints arising from the COVID-19 pandemic.
Tan Sri Dato’ Alex Chen Kooi Chiew Group Executive Chairman says the announcement by the Indonesian Government on the shifting of the administrative capital of Indonesia to East Kalimantan has a positive effect as it will accelerate the economic and infrastructure development in East Kalimantan where MKH plantation is located.
The Building Materials Trading Division has established its own ironmongeries trademarked EGON and sanitary fittings, CASCADA to fit the aesthetically needs of modern residential and commercial projects that can enhance the prestige of the property.
As for the Hotel and Property Investment Division, the Group extended support to our tenants at Plaza Metro Kajang and Metro Point Complex by giving rental rebates for eligible tenants to ease their financial burdens during the Movement Control Order. During the financial year, the Group contributed approximately RM664,000 in community engagement.
