The integrated industrial space solutions provider reported more than four-fold jump in net profit to RM45.8 million for the second quarter ended 30 September 2022 (2Q23) from RM9.8 million previously.
The spike in net profit was due to stronger progress in its industrial parks and fair value gains
arising from the disposal of 10 plots of industrial properties from inventories recognised at cost
to AME Real Estate Investment Trust (AME REIT) during the quarter.
Even prior to the disposal of inventories at cost to AME REIT, AME’s stellar net profit growth was helped by 70.8% jump in 2Q23 revenue to RM147.5 million from RM86.3 million previously, driven by stronger property development and construction and engineering segments.
The property development segment – consisting mainly of contributions from [email protected]
Airport City and [email protected] – posted 14.8% higher revenue of RM53.7 million versus
RM46.8 million previously on higher stages of work completed and timing of income recognition.
Revenue in the construction and engineering segments doubled to RM86.9 million in 2Q23 compared to RM29.0 million a year ago, as a result of higher progression in the stage of completion of the on-going construction and engineering projects.
For the first half ended 30 September 2022 (1H23), net profit jumped more than three-fold to
RM51.9 million from RM17.0 million, on 74.4% revenue rise to RM284.4 million from RM163.1
For 1H23, the Group recorded new sales of RM124.0 million, mainly from i-TechValley as well as
[email protected] Airport City, up 80.2% from RM68.8 million in the first half last year. The robust
sales performance, currently at 49.6% of its full year sales target of RM250 million, was supported by strong foreign direct investments (FDI) and domestic direct investments (DDI) from China, Singapore, United Kingdom and Malaysia.
“The strong demand recorded not only for existing i-Parks, but also its newly-launched 169.8-acre i-TechValley in October 2022 fuelled the Group’s optimism for future prospects,” AME’s Group Managing Director, Kelvin Lee Chai said.
“AME’s well-managed industrial parks are gaining repute internationally as premier business
destinations and serve as important supply chain links in Southeast Asia. We are buoyant that our industrial parks will continue to perform well, backed by robust interest from Malaysia and
overseas’ investors, comprising mid-scale to large companies across various sectors,” he added.
“With the sanguine outlook, we are currently sourcing for new landbanks in central and southern regions to replicate our success, with RM173.5 million of proceeds from the recent listing of AME REIT allocated for landbanking and expansions to capture more opportunities in the industrial park space,” he remarked.
“Furthermore, we are making great strides in our upcoming foothold in Penang, where we plan to build an integrated industrial park with RM1 billion gross development value. The overall
business outlook is positive for AME given the conducive investment climate,” he stressed.
The Group’s i-Parks have garnered investments from multi-national and local corporations across various sectors, including precision engineering, pharmaceutical manufacturing, trading,
warehouse/storage, electrical and electronics (E&E) manufacturing, research and development
(R&D) and assemblies.