KUALA LUMPUR (May 29): Property developer Mulpha International Bhd returned to the black in the first quarter ended March 31, 2026 (1QFY2026), supported by stronger residential property settlements in Australia and improved performance from its hospitality operations.
The group posted a net profit of RM9.41 million compared with a net loss of RM4.08 million a year earlier. Revenue rose 37% year-on-year to RM289.57 million from RM211.33 million previously.
In a filing with Bursa Malaysia, Mulpha said earnings improvement was mainly driven by higher sales recognition from its Australian residential developments, especially projects under subsidiaries Norwest Quarter and Sanctuary Cove.
The hospitality and leisure division also recorded stronger contributions as hotel trading conditions improved across several Australian and New Zealand assets, including InterContinental Sydney and Oaks Auckland Hotel.
However, recurring income from the investment property segment declined following the disposal of Capri by Fraser Roma last year, resulting in lower leasing income contributions.
No dividend was declared for the quarter.
On a quarter-on-quarter basis, earnings were lower compared with 4QFY2025, which had benefited from a one-off gain arising from the disposal of the group’s stake in the London Marriott hotel, alongside stronger seasonal demand across parts of its hospitality portfolio.
Looking ahead, Mulpha said its diversified exposure across hospitality, residential development and investment assets should help cushion the group against ongoing economic uncertainties.
The group noted that Australia’s residential property market could experience slower demand due to elevated interest rates and weaker buyer sentiment.
Mulpha also highlighted that recent tax changes announced under the Australian Federal Budget, while not directly targeting new residential developments, may still create uncertainty across the broader housing market.
Despite this, the group expects the hospitality sector to remain supported by continued corporate and leisure travel activities.
Mulpha added that its Leisure Farm development in Johor could benefit from stronger economic activity arising from the Johor-Singapore Special Economic Zone (JS-SEZ).
At the same time, the company said it continues to monitor external risks such as geopolitical tensions and interest rate movements, although it currently has no direct operating exposure to affected regions.
Mulpha shares closed one sen lower at RM3.00 on Thursday, giving the company a market capitalisation of RM933.5 million. The stock has declined 4.7% year-to-date.
What investors can learn from Mulpha’s latest quarterly results is that diversified property groups with exposure to hospitality and international residential markets may be better positioned to weather softer domestic conditions. The recovery in hotel operations and recurring tourism activity also demonstrates how hospitality assets can complement traditional property development earnings during periods of market uncertainty. In addition, the company’s cautious outlook on Australia’s residential sector highlights how interest rates and policy changes continue to influence buyer confidence and property demand globally.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 29 May 26
Malaysia