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PETALING JAYA (Aug 19): Radium Development Bhd’s net profit rose nearly nine-fold to RM7.01 million for the second quarter ended June 30 (2QFY2026), from RM785,000 a year earlier, as revenue increased on higher work progress and sales across its ongoing projects.
In a Bursa Malaysia announcement on Tuesday (Aug 18), the property developer said revenue grew 75% to RM74.62 million from RM42.58 million in the corresponding quarter a year earlier. Profit before tax (PBT) rose 244% to RM13.08 million from RM3.80 million, while profit for the period increased to RM9.26 million from RM1.84 million.
Radium said revenue and gross profit were primarily driven by work progress at Suite Canselor SoHo at Gombak, Selangor; Residensi Desa Timur apartment in Sungai Besi, Kuala Lumpur; and Radium Arena condominium in Old Klang Road, KL.
The group attributed the higher PBT partly to tighter control of marketing-related expenses and the recognition of notional interest arising from the unwinding of discounts on long-term receivables under MFRS 9.
On a quarter-on-quarter (q-o-q) basis, revenue rose 5% from RM70.81 million in 1QFY2026, while gross profit increased 24% to RM24.42 million and PBT gained 42% to RM13.08 million.
Radium said the q-o-q improvement in PBT was primarily driven by lower site-clearance costs for land involved in a settlement deal with KL City Hall (DBKL), as the works neared completion before handover to DBKL.
As at June 30, equity attributable to owners stood at RM843.26 million, compared with RM831.64 million at end-2025. Total borrowings increased to RM567.24 million from RM482.66 million, mainly for land acquisition and working capital.
For FY2026, Radium said its performance is expected to be driven by progress across its ongoing developments and a planned new launch.
The group plans to launch a joint-venture development in Kepong in September, with a potential estimated gross development value (GDV) of RM403 million.
Its ongoing projects include Residensi Desa Timur, comprising Residensi Wilayah and suite apartment components with a combined estimated GDV of RM982 million, and the 988-unit Radium Arena, with an estimated GDV of RM505 million.
In a separate press release on Tuesday, Radium said Vista Adesa, the 1,218-unit Residensi Wilayah apartment component of the RM1 billion Desa East Residences serviced apartment development, reached its topping-out milestone in July and remains on track for completion in the second quarter of 2027.
Group managing director Datuk Gary Gan Kah Siong said the topping-out reflected progress across the group’s portfolio, while the upcoming Kepong launch would position it for its next phase of growth.
Separately, Radium is pursuing diversification into healthcare through the planned Radium Hospital @ Ayer Keroh, a 140-bed tertiary care hospital slated to open in the first half of 2028.
The group said in its press release that it was also advancing its collaboration with Japanese senior living and assisted care services provider Tokyu E-Life Design Inc (TELD) through a study tour and knowledge transfer programme aimed at developing its capabilities in senior living and integrated care.
No dividend was recommended for the quarter.
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