PETALING JAYA: Fajarbaru Builder Group Bhd
reported a strong set of results for the first half of 2024 (1H24), with its profit after tax rising by 977% year-on-year (y-o-y) to RM23.8mil.
The surge in bottomline was achieved on the back of higher contributions from the property development as well as the logging and timber trading segments.
Revenue for the six-month period also rose by 91% y-o-y to RM199.77mil.
Fajarbaru's strong 1H24 results was significantly driven by its second-quarter earnings that benefited from the higher activities in the property development and construction segments.
In the second quarter ended Dec 31, 2023 (2Q24), the group's profit after tax jumped by 606% quarter-on-quarter (q-o-q) to RM20.88mil.
Revenue, on ther other hand, increased by 74% q-o-q to RM126.79mil.
The strong second-quarter bottomline was mainly contributed from the property development segment as result from higher work progress at Vierra Residence@Kinrara.
In comparison, lower earnings in the immediate preceding quarter was primarily impacted by the reassessment of the cost of an existing construction project
in the construction segment.
For the quarter under review, Fajarbaru achieved earnings per share of 2.59 sen. The group did not announce a dividend for 2Q24.
Looking ahead, Fajarbaru anticipates a favourable performance for the rest of the financial year ending June 30, 2024.
"Moving forward, the group will continue to concentrate on construction, property development, logging and timber trading and the plantation segments to ensure a sustainable revenue flow.
"The group is also adopting a cautious and vigilant approach to address external challenges, such as the potential effects of international conflicts, increasing raw material costs and anticipated uncertainties in the upcoming year.
"Nonetheless, we have confidence that our diverse divisions are are adequately prepared to seize new opportunities within our core business," it told shareholders in a stock exchange filing.
Fajarbaru noted that it remains steadfast in its commitment to the strategic, long-term growth plan for its property development segment in Malaysia.
Currently, the group is making progress on its latest development project, Desa Green, located in Kuala Krai, Kelantan,
The initial phase of this freehold development, named Residensi Intan @ Desa Green comprises single-story terrace houses and single-story semi-detached homes and is estimated to have a gross development value of RM69.8mil.
In Australia, the group's property development, The Wilds, located in Northcote, Melbourne, is positioned to establish a benchmark in Environmentally Sustainable Design principles, it said.
This development aims to be the first carbon-neutral detached housing project in inner Melbourne, where all residences will be powered exclusively by electricity and equipped with solar panel arrays.
As for its construction business, Fajarbaru said it is committed to ensuring the efficient and timely completion of its ongoing projects.
These projects encompass high-rise residential buildings, affordable apartments, retail complexes, service apartments, and the redevelopment of military facilities.
Currently, the group's order book is valued at approximately RM795mil, with RM170mil attributed to internal development projects.
Meanwhile, Fajarbaru also said that it is actively engaged in pursuing new construction projects through tendering processes in both the private and government sectors, with a combined value
of RM4.7bil.
"In the logging and timber trading segment of the group, we have approximately
20,468 acres of working block through our subsidiaries and associate company and will continue to contribute to the group's earnings in the future," said Fajarbaru.
