PETALING JAYA (May 29): Selangor Dredging Bhd (SDB) has maintained its single-tier dividend at 3.0 sen per share for the financial year ended March 31, 2026 (FY2026), despite slipping into the red amid lower contributions from completed projects and slower earnings recognition from newer developments.
In a filing with Bursa Malaysia, the property developer said the proposed dividend is subject to shareholders’ approval at the upcoming annual general meeting and matches the payout declared for FY2025.
SDB’s cash and cash equivalents strengthened significantly to RM132.42 million as at March 31, 2026, compared with RM62.90 million a year earlier. The group also reported RM184.12 million in unbilled sales from its ongoing projects.
However, the company recorded a net loss of RM41.22 million for FY2026 versus a net profit of RM21.92 million in the previous financial year, as revenue fell sharply to RM174.48 million from RM375.95 million previously. Loss per share attributable to ordinary shareholders stood at 15.66 sen compared with earnings per share of 8.33 sen in FY2025.
For the fourth quarter ended March 31, 2026 (4QFY2026), SDB posted a net loss of RM8.03 million against a net profit of RM395,000 a year earlier, while quarterly revenue declined to RM26.41 million from RM52.14 million.
The weaker performance was mainly attributed to the completion of the Jia project in Bukit Serdang and the 19Trees development in Melawati, which resulted in lower profit contributions during the year. Newly launched projects were still in their early stages of development, contributing limited revenue and profit recognition.
As at end-FY2026, total bank borrowings stood at RM385.32 million. Net assets per share attributable to ordinary equity holders decreased to 189.57 sen from 205.62 sen previously.
Separately, SDB announced a revaluation exercise involving several hotel, office and commercial properties, including Hotel Maya Kuala Lumpur, Plaza 138 office suites, The Hub SS2 commercial units, SqWhere office and commercial properties, Sunshine Villa in Port Dickson, and a commercial complex in Batu Ferringhi, Penang.
The revaluation exercise increased the group’s net assets by RM4.24 million. Hotel Maya Kuala Lumpur was assigned a market value of RM199 million, resulting in a revaluation surplus of RM4.76 million.
What We Learn
SDB’s FY2026 results highlight the cyclical nature of property development earnings, where project completion can significantly reduce revenue and profit contributions before newer launches mature. Despite posting a net loss, the group maintained its dividend payout, signalling confidence in its liquidity position and long-term outlook.
The sharp increase in cash reserves and sizeable unbilled sales indicate that SDB still has ongoing projects capable of supporting future earnings recovery. The revaluation gains from hospitality and commercial assets also suggest that the company retains valuable investment properties that strengthen its balance sheet despite weaker operational performance.
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 30 May 26
Malaysia