JOHOR BAHRU: An integrated industrial space solutions provider AME Elite Consortium Berhad recorded its highest-ever quarterly new industrial property sales of RM266.5 million in the first quarter ended June 30, 2024 (1Q25), driven by robust demand from domestic and international businesses seeking to establish or expand their operations in Malaysia.
AME’s i-TechValley at SILC industrial park in Johor continued to attract diverse clientele from sectors including electronics, precision engineering, medical devices, and healthcare and pharmaceutical.
The strong demand highlights the attractiveness of AME’s integrated solutions, which cater to the requirements of businesses seeking to diversify their supply chains and tap into the growth potential of Southeast Asia.
The Group’s robust sales momentum contributed to a substantial increase in unbilled sales to RM434.5 million as at June 30, 2024 from RM226.8 million as at March 31, 2024.
Executive director and Group CEO Dylan Tan Teck Eng said, “AME’s record first-quarter sales underscore the success of our integrated industrial park model and comprehensive industrial space solutions, proving to be highly attractive to multinational corporations expanding in Malaysia. As Johor’s infrastructure landscape transforms with projects like the Rapid Transit System (RTS) Link, the potential KL-SG High-Speed Rail (HSR), and establishment of the Johor-Singapore Special Economic Zone (SEZ), we will leverage these opportunities for continued growth. Our industrial parks serve as ideal locations for businesses seeking enhanced connectivity and regional economic integration.”
He added that building on their proven track record of delivering world-class industrial spaces, they are eager to replicate their success in Penang with their upcoming 176-acre Northern TechValley industrial park in the fourth quarter of 2024.
“Penang’s thriving semiconductor industry presents a compelling opportunity, and we are confident that Northern TechValley will emerge as a prime destination for leading companies,” said Tan.
The upcoming official launch of Northern TechValley in the fourth quarter of 2024, with a gross development value (GDV) of RM1 billion, further diversifies AME’s portfolio, and provides the Group with a development pipeline until 2030.
AME announced its 1Q25 financial results today, reporting revenue of RM142.4 million and net profit of RM14.7 million, reflecting a year-on-year decrease compared to RM222.5 million and RM23.3 million respectively in the previous corresponding quarter. The performance was attributed to timing differences in project completions and revenue recognition, leading to lower contribution from the property development segment.
Despite the year-on-year variance, other key business segments demonstrated robust performance. Property investment and management services segment revenue grew 15.4% to RM17.2 million from RM14.9 million previously, driven by additional units of factory leased by industrial park tenants, higher rental income generated from workers’ dormitories and management services income from industrial park tenants. Additionally, the engineering services segment saw an 80.8% surge in revenue to RM27.6 million, due to progress of ongoing engineering projects.
Tan said: “The strong 1Q25 sales performance and robust project pipeline reinforce our confidence in achieving our sales target of RM400 million for FY2025. We continue to pursue strategic expansion and landbanking opportunities across Malaysia, enhancing our leadership in the industrial property market and delivering world-class industrial space solutions.”
