MKH Berhad's (MKH) performance for the first nine months of FY24 was in line with expectations, though it fell short of broader market forecasts. The company's core net profit for 9MFY24 reached RM59.6 million, representing a 13% year-on-year increase but only met 72% of the internal FY24 forecast and 67% of Bloomberg's consensus estimates. The revenue for the same period rose by 7% year-on-year to RM806.1 million, driven by stronger contributions from both the property and plantation segments. This increase was attributed to higher progress billings and a rise in crude palm oil (CPO) sales volume and pricing.

Despite the overall positive revenue growth, MKH's 3QFY24 saw a 31% quarter-on-quarter and 8% year-on-year decline in core net profit, amounting to RM14.0 million. The decline in profit was noted despite a significant rise in revenue, due to varying factors within the company's operational segments. As in previous quarters, no dividend was declared for 3QFY24, consistent with the lack of distribution in the same quarter the previous year. An analyst from CGS International Stock Broking House maintains an ADD with RM1.44 TP.

On the property front, MKH has revised its planned launches for FY24, significantly increasing the estimated gross development value (GDV) to RM1.1 billion from RM520 million previously. This upward adjustment includes the addition of new projects such as Gaya Residency in Kajang 2, alongside other planned launches like Naluri Residence in Cheras and Kajang 2 landed retail shops. As of June 2024, the company's unbilled sales stood at RM553.8 million, which is a cover ratio of 0.5x, reflecting a slight decline from the previous quarter.

In the plantation sector, MKH reported a decrease in CPO sales volume to 22,300 metric tonnes from 24,300 metric tonnes in the same quarter of the previous year. However, the impact of lower volume was somewhat mitigated by an increase in the average CPO price to RM3,658 per metric tonne, up from RM3,252 per metric tonne in 3QFY23.