Current quarter ("1Q 2019") against preceding year corresponding quarter ("1Q 2018")
For the 1Q 2019, the Group registered revenue of RM304.885 million and profit before tax of RM59.38 million as compared to revenue of RM229.157 million and profit before tax of RM54.812 million reported in the 1Q 2018. The increase in the Group revenue was mainly due to higher contribution from the property development and toll operation sectors. Although the revenue has increased by 33.05%, the profit before tax for the current year quarter as compared to the preceding corresponding quarter only increased by 8.33% due mainly to higher interest expense incurred for the toll operation sector in the current quarter.
The performance of the respective operating business segments for the 1Q 2019 under review as compared to the 1Q 2018 is analysed as follow:
The construction sector reported a higher revenue of RM164.031 million for the 1Q 2019 as compared to RM156.470 million in 1Q 2018. The increase in revenue and gross profit in the 1Q 2019 were mainly due to the higher construction workdone recognized for Duke Phase 3, while other River Of Life projects have also contributed to the increase in the revenue for this current quarter.
The property development segment reported a higher revenue of RM97.254 million as compared to RM41.146 million in the preceding year corresponding quarter. Higher sales recognition for property development following increase in progress work done has contributed to a higher revenue for the segment. Correspondingly, the gross profit for this quarter has increased as compared to the preceding year corresponding quarter which is in tandem with the increase in revenue.
The toll operations sector registered a higher revenue of RM43.337 million in 1Q 2019 as compared to RM31.294 million in 1Q 2018. There is an increase of 38.48% in the toll revenue due to the increase in traffic volume and the additional contribution from the opening of the Duke Phase 2 on 23 October 2017. As a result of the increased revenue, the sector reported a higher gross profit of RM33.901 million as against RM23.012 million in 1Q 2018.
In the preceding year corresponding quarter, the finance cost incurred for Duke Phase 2 was capitalized as the toll collections has not commenced, whereas in this current year quarter, with the commencement of the toll in Duke Phase 2, the finance cost is fully recognized in the income statement.
Revenue for the current quarter slightly increased from RM0.247 million to RM0.263 million arising from the additional rental income generated from the investment properties. Correspondingly, this has increased the sector's gross profit for the quarter.
Current year to date ("YTD 2019") against preceding year corresponding period ("YTD 2018")
For the YTD 2019, the financial review for the Group compared with the YTD 2018 are similar to the financial review of the current quarter ("1Q 2019") against preceding year corresponding quarter ("1Q 2018"). Please refer to the above for the analysis of the performance of the respective operating business segments.
The Board expects the ongoing construction of SPE, River of Life and related projects, the toll revenue and the recognition of unbilled sales from property development activities continue to contribute positively to the Group's turnover and profitability in the current financial year.
Barring any unforeseen circumstances, the Board is confident that the Group's performance would remain satisfactory for the financial year ending 30 June 2019.