Majuperak plots growth in renewable energy, housing and tourism after strategic reset
After a year of restructuring, the Perak state-linked company returned to the black in the first quarter of 2025 (Q1) with a net profit of RM1.45 million, buoyed largely on one-off land sales and dividend gains.
Muhammad Yazurin Sallij said the company is now focused on delivering organic growth, anchored by a series of initiatives in property development, renewable energy and tourism.
"We look forward to a strengthened second half of 2025, primarily driven by the Taman Tasik Ardea development, which is a key revenue and profit contributor," he told Business Times, adding that it will serve as a central pillar of Majuperak's recurring income strategy.
A significant portion of Majuperak's Q1 earnings came from non-recurring items including a RM5 million land disposal and RM697,000 in dividend income.
At the same time, operating cash flow remained negative while receivables more than doubled, suggesting potential pressure on collections or the structuring of recent deals.
Still, Muhammad Yazurin maintains that the group is on firmer footing following its 2024 reset.
"We are transforming into a leaner, performance-driven organisation with enhanced governance and a sharper mandate aligned to state priorities," he said.
Majuperak's expansion into renewable energy via its subsidiary Majuperak Energy Resources Sdn Bhd forms part of its long-term strategy though the segment's current scale remains modest.
The unit posted a segment profit of RM672,000 in Q1, reversing a RM60,000 loss a year earlier, according to the company's latest unaudited financial report.
Looking ahead, Muhammad Yazurin said initiatives such as commercial solar rooftops, electric vehicle charging hubs and solar street lighting are set to launch this year.
He added larger-scale solar projects involving Shizen International Inc, MK Land Holdings Bhd and Gamuda Bhd are expected to start contributing revenue from 2026.
Tourism, another strategic pillar, is being scaled with developments at Teluk Batik Resort and Gua Tempurung. The group aims to replicate the success of Tasik Cermin, which reportedly drew 1.2 million visitors.
On the commercial front, Majuperak has converted the former Silveritage Galleria into Bazar Ipoh with 94 per cent occupancy and plans to expand programming through a one-stop centre for Perak-made products.
In property development, several new housing schemes are in the pipeline, including the RM64.6 million Trong Bakti project slated for the fourth quarter and the RM48 million Changkat Rembian development set for early 2026.
The group's pivot toward affordable housing in Perak, including ongoing developments in Batu Gajah, Langkap, Chemor and Ulu Kinta, is expected to form the backbone of its earnings base.
However, the segment remains vulnerable to market conditions particularly in terms of demand absorption and rising construction costs.
"The group has taken steps to strengthen our board, improve governance and restore financial discipline. We are determined to uplift our current status and continue delivering value to shareholders," said Muhammad Yazurin.
On Friday, Majuperak shares rose one sen or 7.69 per cent to close at 14 sen, with 25,800 units traded. This valued the company at RM39.82 million. Year-to-date, it has fallen 28.2 per cent from 19.5 sen on Jan 2.
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