KUCHING: Naim Holdings Bhd’s group net profit surged to RM228.2 million for the financial year ended December 31, 2024 (FY2024), compared to RM35 million in FY2023, marking an increase of RM193.2 million. This significant growth was primarily driven by substantial gains from land disposal.
Year-on-year, group revenue jumped to RM498.5 million from RM317 million, an increase of RM181.5 million.
The company’s earnings per share (EPS) also rose sharply to 45.58 sen from 7 sen previously.
In December 2024, Naim’s wholly-owned subsidiary, Naim Land Sdn Bhd, completed the disposal of 180.8 hectares of land located at Sungai Sajiram/Sungai Kuap, Sungai Merdang, Samarahan, to Onlyee Flora Sdn Bhd for RM223.38 million in cash.
The original cost of investment in the land, acquired in 2008, was RM23.15 million, with a carrying amount of RM28.18 million based on the company’s audited financial statements for FY2023.
In FY2024, Naim’s property development segment generated significantly higher revenue of RM273.57 million (FY2023: RM71.8 million), while the construction segment reported a lower revenue of RM184.62 million (RM220.2 million). Meanwhile, the others segment saw a notable improvement, with revenue increasing to RM40.27 million (RM24.94 million).
The property development segment’s profit soared to RM178.86 million (RM6.76 million), while the construction segment posted a substantial profit increase to RM13.64 million (RM4.53 million). The others segment, which includes hotel, investment property, and quarry businesses, returned to profitability with a profit of RM10.33 million (-RM6.84 million).
“As compared to 2023, the group recorded higher revenue (RM498.46 million in 2024 vs RM316.92 million in 2023) and profit before tax (RM283.1 million vs RM43.19 million) in the year under review, largely attributed to the RM223.4 million land sale completed in the last quarter of the year.
“At the same time, our core business performance also improved, partly due to cost savings from certain completed projects and a gain from the disposal of an investment property.
“The share of net profit (after tax) from our major associate, Dayang Enterprise Holdings Bhd, increased significantly from RM53.2 million in 2023 to RM76.8 million in 2024,” Naim stated in explanatory notes to its financial results.
Reviewing the property development segment’s performance, Naim reported that its total sales in 2024 reached RM273.57 million (2023: RM71.8 million), mainly driven by land sales.
“New property sales secured during the year amounted to RM58.5 million, lower than the RM79.9 million recorded in 2023.
“The segment’s performance was partly impacted by slower progress on newly launched development projects and higher interest expenses,” the property developer added.
Year-on-year, the construction segment’s revenue declined by 16 per cent to RM184.62 million (RM220.2 million) due to reduced work progress on near-completion projects. However, its profit tripled to RM13.64 million (RM4.53 million), benefiting from cost savings arising from the amicable settlement of a litigation case and finalising accounts for some completed projects.
The others segment reported strong financial performance, with revenue rising to RM40.27 million (RM24.94 million), bringing the segment back to profitability with a profit of RM10.33 million (-RM6.84 million). This was driven by higher quarry sales, improved occupancy rates at its Bintulu hotel, and the positive contribution from an investment property disposal.
In 4Q2024, Naim posted a remarkable group net profit of RM135.7 million (4Q2023: RM19.95 million), as revenue surged to RM300.9 million (RM19.1 million), driving EPS to 27.1 sen (3.98 sen).
The financial results for 4Q2024 also showed significant improvement compared to the preceding quarter (3Q2024), where group revenue stood at RM80.43 million (4Q2024: RM300.9 million) and pre-tax profit at RM47.99 million.
Looking ahead to FY2025, Naim acknowledged that the property market is expected to remain soft in the near term. However, it remains optimistic about growth prospects, particularly in Sarawak, where gradual recovery is evident despite challenges such as property overhang and weakening consumer purchasing power due to interest rate adjustments and inflationary pressures.
“Like most local developers, we have implemented various sales and marketing initiatives to clear our existing inventory while cautiously introducing new projects at competitive prices, given rising costs of materials and financing.
“Our primary focus will be on understanding and meeting customers’ needs by offering quality properties and services, with a cautious approach to product launches that carefully considers features, quality, timing, and project scale,” it added.
Naim is also closely monitoring its ongoing construction projects to ensure timely completion and expected profit margins.
Regarding its others segment, Naim expects gradual improvements, particularly in retail, commercial leasing, and hotel businesses in Bintulu and Miri.
“Various asset enhancement initiatives are being planned and implemented to keep our retail, commercial, and hospitality assets relevant in the market and achieve better investment yields, though this will take time to materialise.
“We will also introduce robust operational platforms to optimise returns from these operations. Various cost-optimisation measures and long-term operational frameworks will be progressively implemented to improve productivity and efficiency while controlling overheads, particularly during low-activity periods.
“As part of our revenue optimisation efforts, we are adopting prudent debt management practices and closely monitoring collections from our retail leasing businesses,” Naim said.
