Meta Bright bullish of record-breaking year after an 8-fold jump in its 1Q net earnings

PROPERTY and hospitality-centric Meta Bright Group Bhd (formerly Eastland Equity Bhd) is on track for a record-breaking year after reporting a stellar 1Q FY6/2025 net profit of RM4.3 mil which already made up 37.5% of the group’s full-year net earnings of RM11.47 mil in FY6/2024.

On a year-on-year (yoy) basis, the RM4.3 mil net profit during the quarter under review accounted for almost eight-fold jump from RM484,000 for the financial period ended Sept 30, 2023.

The group’s revenue for 1Q FY6/2025 ended Sept 30, 2024 saw a surge of 463% to RM58.69 mil from RM10.43 mil in the same quarter last year.

This exceptional growth underscores the success of the group’s strategic initiatives over the past two years, including business diversification and mergers and acquisitions (M&A) that have broadened Meta Bright’s operational footprint and strengthened its revenue base.

The group’s diversified portfolio of businesses also demonstrated robust performance across multiple segments with its building materials segment contributed RM47.93 mil in revenue which reflected the encouraging economic development in East Malaysia.

The Renai Hotel in Kota Bahru, Kelantan

Meanwhile, the leasing and financing division recorded RM2.49 mil, driven by higher rental income from the group’s Australian operations and its hospitality segment anchored by the Renai Hotel in Kelantan which generated RM6.66 mil from increased demand for its convention centre and accommodation.

The group’s energy-related segment and investment properties division, too, posted steady growth by contributing RM450,000 and RM1.04 mil respectively.

The only exception is the property development segment which recorded a mere RM130,000 in revenue due to absence of prior-year disposal gains following which the group remains focused on identifying new opportunities to revitalise this segment.

The group’s operational efficiency was evident in its net cash flows generated from operating activities which stood at RM5.5 mil for the quarter. This marks a significant turnaround from the negative RM6.3 mil recorded in the same quarter last year.

Derek Phang Kiew Lim

“Our diversified business model has once again proven its resilience and ability to generate strong returns,” commented Meta Bright’s executive director (corporate and strategic planning) Derek Phang Kiew Lim.

“Through business diversification, targeted acquisitions and operational optimisation, we have built a resilient and scalable business model capable of delivering sustainable growth.”

Looking ahead, Meta Bright remains optimistic about prospects for its FY6/2025 with the group planning to enhance the competitiveness of its hospitality segment by upgrading the Renai Hotel’s facilities to meet evolving market demands.

In addition, the group shall continue to focus on expanding its presence in the building materials and renewable energy sectors, both of which are poised to benefit from favourable market conditions.

At 4.23pm, Meta Bright was up 0.5 sen or 3.7% to 14 sen with 463,500 shares traded, thus valuing the company at RM354 mil. – Nov 26, 2024