2021-06-10

MCT is gearing up to launch new projects in the second half of this year

MCT is gearing up to launch new projects in the second half of this year



MCT Berhad is gearing up for new launches in the second half of 2021 as it is optimistic that the historically low-interest-rate environment will continue to fuel the property market's growth.

The group said it will maintain its prudent management strategy in the coming quarters while consolidating its market position and refining its competitive edge to seize any opportunities that will arise as the situation improves.

Analysts remained 'neutral' but cautious about the property sector.

AmInvestment Bank sees a bright spot in the affordable segment catering to owner-occupier house buyers versus property investors or speculators.

It said in a research note today that this basic demand for housing is driven by new household formation backed by relatively young population demographics, rapid urbanisation, and the trend towards single-person households and nuclear families versus extended families.

The firm also remained 'neutral on the property sector due to elevated house prices, cautious lending by banks in the residential segment, and home buyers' inability to qualify for a house mortgage.

It said subdued consumer sentiment and dented job security amid the ongoing Covid-19 pandemic were holding consumers back from committing themselves to the purchase of big-ticket items, including a house.

On the financial results of companies, AmInvestment Bank said developers posted mixed results for the first quarter of this year.

It said the latest lockdown (MCO 3.0) could badly hurt sales and property investments, as well as potentially dampen seasonally higher second half of the year's sales.

The firm said the earnings for companies with exposure in property investment like retail and hotel, will be further hit as shopping malls have to be closed except for shops that fall under the 'essentials' category.

MCT recorded revenue of RM90 million in the current quarter ended March 31, 2021 (Q1 2021), as versus RM52 million in the same period a year ago, representing 73 per cent growth.

In a filing with Bursa Malaysia yesterday, MCT said that this was mainly due to the implementation of the first Movement Control Order (MCO) by the government in March 2020 which led to slower construction progress as all businesses came to a halt.

Consequently, the group recorded a net profit of RM1 million in Q1 2021, as compared to a net loss of RM1 million for the corresponding quarter of the preceding year.

Its revenue in Q1 2021 was lower compared to RM207 million posted in the preceding quarter. The net profit in Q1 2021 also fell sharply as compared to RM29 million in the previous quarter.

MCT said the higher revenue recorded in the preceding quarter was mainly due to the higher construction progress pursuant to the delivery of vacant possession for Casa Bluebell @ Cybersouth and Casa Wood @ Cybersouth.

According to MCT's website, Casa Bluebell @ Cybersouth and Casa Wood @ Cybersouth are sold out.

It has few projects that are under construction, namely Casa Bayu @ Cybersouth and Park Place 1 @ Cybersouth, as well as Lakefront Homes, LakeFront Residence, and LakeFront Villa in Cyberjaya.

The group's upcoming projects based on its website are Embun @ Cybersouth, and Alira @ Metropark Subang.



Source: nst.com.my

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