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KUALA LUMPUR (May 29): Real estate developer Mulpha International Bhd (KL:MULPHA) swung back to profit in the first quarter, lifted by stronger property settlements in Australia and improved contributions from its hotel operations.
For the three months ended March 31, 2026 (1QFY2026), Mulpha posted a net profit of RM9.41 million versus a net loss of RM4.08 million in the previous year. Revenue was also up by 37% to RM289.57 million, compared to RM211.33 million in the previous year’s corresponding quarter.
In a bourse filing with Bursa Malaysia, Mulpha said the improved earnings was driven by higher sales recognition from residential projects in Australia, particularly developments under subsidiaries Norwest Quarter and Sanctuary Cove.
There were also strong contributions from its hospitality and leisure segment, where trading conditions at several Australian and New Zealand hotel assets were better, including InterContinental Sydney and Oaks Auckland Hotel.
Meanwhile, recurring income from its investment property arm fell, following the disposal of Capri by Fraser Roma last year, which resulted in lower leasing contributions.
No dividend was declared for the quarter under review.
Quarter-on-quarter earnings were dragged down as the three-month period ended Dec 31, 2025 (4QY2025) was boosted by a one-off gain from the disposal of the group’s stake in the London Marriott hotel, alongside stronger seasonal demand across parts of its hospitality portfolio.
Mulpha said its diversified exposure across hospitality, residential developments and investment assets is expected to help cushion the group against an uncertain operation environment.
Demand in Australia’s residential market is expected to slow amid elevated interest rates and weaker buyer confidence, said Mulpha.
“While recent tax changes announced in the Australian Federal Budget do not specifically target new residential buildings, they may create a period of increased uncertainty across the broader Australian residential market,” said the real estate developer in its filing.
However, the group said the hospitality industry is expected to stay supported by corporate and leisure travel. It said that its Leisure Farm development in Johor could see future upside from increased economic activity linked to the Johor-Singapore Special Economic Zone (JS-SEZ).
Mulpha added that it is closely monitoring external factors, which includes ongoing geopolitical tensions and interest rate trends even though it said it has no operating exposure to the affected regions.
Shares of Mulpha closed down one sen or 0.3% to RM3 on Thursday, which gives the group a market capitalisation of RM933.5 million. Year to date, the stock is down by 4.7%.
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