Malton Bhd said prospects of the property development industry for its current financial year ending June 30, 2022 (FY 22), are expected to remain challenging.

The property and construction group said the re-imposition of the stricter lockdown from June 1, 2021, due to rising cases of Covid-19 is expected to impact the results of the group for the current quarter ending September 30, 2021, arising from lower projected new sales and delays in the launching of new projects.

However, it believes that the current low-interest rates, reintroduction of Home Ownership Campaign, and exemption of real property gain tax for residential properties may likely boost the property sector demands.

In a stock exchange filing today, Malton said that it expects several ongoing development projects, namely, Pavilion Bukit Jalil mall, The Park 2 Residence @ Bukit Jalil, Duta Park Residence @ Jalan Kuching, Rapid City Centre @ Johor, Villa 22 @ Bukit Rimau, Mutiara Hilltop @ Puchong, and BAC Tower, to contribute to its earnings for FY 2022.

According to Malton, these projects have total unbilled sales of RM896 million as of June 30, 2021.

Malton's revenue for the quarter ended June 30, 2021, declined by 65.1 per cent to RM240.8 million as compared to RM689.6 million reported in the preceding year's corresponding quarter.

The group's pre-tax profit fell by 11.8 per cent to RM16.1 million as compared to RM18.3 million reported in the preceding year's corresponding quarter.

For the 12 months to June 30, 2021, Malton posted a 44.4 per cent decline in revenues to RM1.01 billion as compared to RM1.81 billion reported in the preceding corresponding financial year.

Malton attributed the drop in revenue to lower billings from the property division.

It said in the filing that several projects, including the Pavilion Bukit Jalil mall, Villa 22 @ Bukit Rimau, and The Park 2 @ Bukit Jalil projects are nearing completion.

It also said that billings from the construction division for these projects improved substantially by 239.8 per cent to RM350.1 million as compared to RM103.0 million in the preceding corresponding financial year.

The group's pre-tax profit for the current financial year fell by 45.6 per cent to RM28.1 million as compared to RM51.6 million reported in the preceding corresponding financial year.