NCT Alliance: Q3 2024 Financial Highlights
NCT Alliance Bhd (KL) announced its financial results for the third quarter ending Sept 30, 2024 (3QFY2024), revealing a mixed performance with notable revenue growth but a decline in net profit.
Financial Overview
NCT Alliance’s net profit for 3QFY2024 decreased by 35.6% to RM6.52 million compared to RM10.12 million in the same quarter last year. The reduction in profit before tax (PBT), down from RM14.17 million to RM4.71 million, was primarily attributed to a land cost adjustment for the Ion Belian Garden project following the group’s acquisition of NBGH.
Despite the dip in net profit, the group reported a 6.6% increase in revenue to RM90.24 million, up from RM84.63 million in 3QFY2023. This growth was driven by:
- Higher progressive profit recognition from Ion Belian Garden and Grand Ion Majestic projects.
- Sales from the completed Acacia project stock.
However, the completion of Grand Ion Majestic during the year tempered revenue growth.
Nine-Month Performance
For the nine months ending Sept 30, 2024 (9MFY2024), NCT Alliance delivered stronger results:
- Net profit: Rose 7.4% to RM28.39 million from RM26.43 million.
- Revenue: Increased by 25.7% to RM248.85 million from RM198.03 million.
Key Project Contributions
Ion Belian Garden
The land acquisition for Ion Belian Garden, a 105.3-acre development in Batang Kali, Selangor, significantly impacted the group’s financials this quarter. The project is set to be a key driver of future revenue and profit growth.
Grand Ion Majestic
While the completion of Grand Ion Majestic contributed to lower revenue this quarter, its earlier stages of development were instrumental in boosting year-to-date earnings.
Acacia Project
The sale of completed stock from this project provided additional revenue during the quarter, showcasing the group’s ability to monetize its completed developments effectively.
Market Outlook
NCT Alliance remains optimistic about the property development sector, underpinned by Malaysia’s:
- Encouraging economic growth forecasts.
- Favorable government policies, including:
- Relaxation of the Malaysia My Second Home (MM2H) programme.
- Incentives from Budget 2024.
- Rollout of major infrastructure projects.
The decision by Bank Negara Malaysia to maintain the overnight policy rate (OPR) is also expected to sustain market demand for properties.
However, NCT is maintaining a cautious stance, closely monitoring economic conditions and market trends to navigate challenges and capitalize on emerging opportunities.
“We remain prudent, closely monitoring economic conditions and market trends to navigate challenges and seize emerging opportunities,” said NCT executive chairman and group managing director Datuk Seri Yap Ngan Choy.
Share Performance
As of the close of trading on Tuesday, NCT Alliance’s share price remained unchanged at 47 sen, giving the group a market capitalization of RM861.63 million. Year-to-date, the stock has appreciated by 42.42%, reflecting investor confidence in the group’s long-term growth potential.
Looking Ahead
With its portfolio of ongoing projects and strong fundamentals, NCT Alliance is well-positioned to leverage Malaysia’s robust property market. While challenges remain, the group’s diversified project base and proactive strategies provide a solid foundation for sustainable growth.
