KUALA LUMPUR: Metro Kajang Holdings Bhd’s net profit for the fourth quarter ended Sept 30, 2009 (4Q09) more than halved to RM8.63 million from RM20.46 million a year earlier, due to higher recognition of net gains on changes in fair value of investment properties in the previous corresponding quarter.

Revenue dropped 16% to RM99.28 million from RM118.06 million while earnings per share slipped to 3.77 sen from 9.03 sen.

For the full year, the group’s revenue rose 8% to RM373.63 million from RM345.95 million in FY08. Net profit declined by 17.8% to RM42.4 million from RM51.59 million due to fair value adjustment made in FY08.

Executive chairman Datuk Alex Chen said: “Operation-wise, the group’s businesses posted healthy growth despite the challenging operating environment.”

He attributed this to steady contribution from the property development and investment divisions, strong growth achieved by the integrated livestock division and its furniture manufacturing division returning to the black.

He added that Metro Kajang’s property launch plans would be aggressive in FY10 with planned launches worth about RM2 billion in estimated gross development value over the next six to eight years.

“The group’s efforts to expand its businesses continues. Our property development division’s activities will rise significantly due to the new projects. On our oil palm plantation in East Kalimantan, we target to complete planting by end-2010 and to deliver our first fresh fruit bunches in late-2011,” Chen said.

As at end-September 2009, about 7,500 hectares out of the total 15,942.6ha have been planted.

This article appeared in The Edge Financial Daily, November 26, 2009.