Good Afternoon All,
Following AME Elite Consortium Berhad's 1Q27 results briefing, here is our quick take for investors:
📈Investment Highlights
📌 Solid 1Q27 earnings growth, though partly FV-gain driven. 1Q27 revenue rose 4.4% YoY to RM195.7m, while PBT climbed 37.4% YoY to RM69.4m. Net profit attributable to owners surged 50.0% YoY to RM48.6m, though this includes RM16.3m in fair value gains net of tax and non-controlling interests (RM9.3m realised from an industrial property disposal to AME REIT, RM7.0m unrealised). GP fell 5.9% YoY to RM57.9m.
📌 Construction leads segmental growth, orderbook provides visibility. Construction was the largest revenue contributor at 41.1% of the 1Q27 mix, with construction revenue surging 74.3% YoY on higher work-completion stages. The external Construction & Engineering orderbook stood at RM485.7m. The group secured a RM214.1m contract from KLIA Aeropolis Sdn Bhd (a Malaysia Airports Holdings Berhad subsidiary) for a test cell facility in Sepang, targeted for completion by January 2027, and management also flagged a multi-tenant industrial complex win in Subang (value undisclosed).
📌 Property sales pipeline underpinned by unbilled sales. New property sales reached RM62.1m in 1Q27, against management's combined FY2027 target of RM550m (RM400m group + RM150m Northern Tech Valley JV). Unbilled sales stood at RM395.1m, mainly from i-TechValley, Johor; Northern Tech Valley recorded a 12% take-up rate with RM116.9m unbilled.
📌 Recurring income and occupancy momentum building. Property leasing revenue grew 20.8% YoY to RM14.5m. The i-TechValley at SILC dormitory stood at 47% occupancy as at 30 June 2026, with management citing a more recent 54% occupancy at the briefing; total worker accommodation capacity has expanded to over 9,000 beds.
📌 Landbank expansion and new FDI wins. Total landbank stood at ~295.3 acres; a further 31.8-acre Senai Airport land acquisition (RM101.2m) is expected to complete in 1H2027, growing the landbank to ~327 acres. Two i-TechValley factories were sold to HYA Industry (Malaysia) Sdn Bhd for RM85.8m, while an MOU was signed with Taiwan-listed FIC Global Inc (via subsidiary PRO3C (Malaysia) Sdn Bhd) to support its Johor manufacturing expansion.
📌 Dividend. The Board declared a 4.0 sen interim and 3.0 sen special interim dividend (7.0 sen total) for FY2026, paid 3 July 2026.
💡 M+ Global View
📌 While 1Q27 net profit growth was partly aided by RM16.3m in fair value gains tied to the AME REIT asset injection, underlying operational momentum remains firm, led by construction revenue recognition and resilient property investment income. Management has established a Sukuk Wakalah Programme to fund future landbank acquisitions, supporting its stated ambition to replicate the i-Park model across southern, central and northern Peninsular Malaysia. With a RM485.7m external orderbook, RM395.1m in unbilled property sales, and an expanding landbank, AME Elite appears well-placed to progress toward management's "new normal" revenue target of RM1.0 billion — though the Board has flagged inflationary pressure on construction and operational costs from ongoing Middle East conflicts as a near-term watch item.
📌 Key catalysts include: (i) execution of the RM214.1m KLIA Aeropolis test cell contract targeted for completion by January 2027, (ii) unbilled sales conversion supporting the group's combined RM550m FY2027 new sales target, (iii) landbank expansion via the pending Senai acquisition and the i-Park@Coalfields JV with KLK Land, and (iv) rising dormitory and leasing occupancy supporting recurring income growth.
Research Team, M+ Global
28 Aug 2026
1August 28, 2026 1.5K 9
