KUALA LUMPUR: Turnkey contractor Melati Ehsan Holdings Bhd is cautiously optimistic about its growth prospects in 2025, after seeing a big drop in revenue and profits in 2024.
The company plans a strong focus on residential and infrastructure projects to drive future development.
The group posted a revenue of RM36.264 million and a profit before tax (PBT) of RM10.154 million for the financial year ended August 31, 2024 (FY2024).
A significant decline compared to the RM102.643 million in revenue and RM18.927 million in PBT recorded for the previous financial year (FY2023), reflecting a 64.67 per cent decrease in revenue and a 46.35 per cent drop in profit.
The group attributed the lower revenue to reduced contributions from the construction segment, which faced a competitive and challenging operating environment.
Its development projects were also in the early stages and have not yet made a notable impact on the FY2024 financial results.
Melati Ehsan officially launched the first phase of its residential development, Bayu Selayang Heights, a high-rise project, on July 14, 2024.
Its executive chairman Tan Sri Datuk Yap Suan Chee said while construction is still in its early stages, with earthworks and piling already completed, the project has received a positive market response, underscoring strong demand within the mid-range housing sector.
Meanwhile, in Johor, the group is currently undertaking the construction of 2,560 single-storey houses and 44 medium-cost retail units as part of the Perumahan Iskandar Puteri Bangsa Johor (PIPBJ) project in Gerbang Nusajaya.
The RM453.5 million development spans 246 acres and targets Johor's B40 demographic, in collaboration with the Johor State Housing Board and other state-linked entities.
Additionally, Melati Ehsan is also progressing with its Bayu 2Sixty project in Kota Kemuning, Shah Alam, with construction having commenced in mid-2024 where piling works are complete, and the superstructure is currently under construction.
The Malaysian economy continues to support the construction and property sectors, fuelled by government policies that promote infrastructure development, affordable housing, and foreign direct investment.
Moreover, key initiatives under the National Energy Transition Roadmap and the Twelfth Malaysia Plan are expected to stimulate growth in high-value sectors, benefiting the construction industry including the group.
The group has a positive outlook for Malaysia's property market, particularly in the affordable housing segments.
This is given government programmes supporting low- and middle-income housing, coupled with sustained demand in desirable locations, resulting in strong take-up rates for new property launches.
Overall, the company's net assets attributable to ordinary equity holders stood at RM252.256 million as of August 31, 2024.
This translates to an improved net asset per share of RM2.18, compared to RM2.12 per share at the end of the previous financial year, indicating a positive trajectory in the group's financial fundamentals.