Hartanah Kenyalang’s 1Q26 Net Profit Drops 64% Despite Positive Sarawak Infrastructure Outlook

KUALA LUMPUR, March 17, 2026 — Hartanah Kenyalang Bhd recorded a significant drop in net profit and revenue for the first quarter of the financial year ending January 31, 2026 (1Q26) as the company completed several key construction projects in the prior year, the firm announced in a filing to Bursa Malaysia today.

For the quarter, the company’s revenue fell by about 46.6% to RM23.87 million, compared with RM44.73 million in the same period last year, primarily due to the completion of several major projects throughout 2025, including the Tambay School Rehabilitation Project (April 2025), Yayasan International School in Sibu (June 2025), Sungai Padas Bridge project (August 2025), and the Tebedu School Rehabilitation Project (September 2025).

As a result of reduced top‑line performance and higher employee costs, net profit amounted to RM674,000, a 64.2% decline compared with RM1.8 million previously reported in 1Q25.

Despite the weaker financial figures, the company maintained a positive outlook for the future, citing strong momentum in Sarawak’s construction sector and rising government emphasis on renewable energy and water infrastructure, which offer new revenue streams.

Hartanah Kenyalang highlighted that its wholly‑owned subsidiary, Hartanah Construction Sdn Bhd, secured its first design‑and‑build contract on January 30, 2026, for a new prison facility in Sibu capable of housing 1,000 inmates — a strategic milestone expected to open doors for additional project wins in the design‑and‑build space.

In addition, its 60%‑owned subsidiary Hartanah Kenari Sdn Bhd plans to expand operations into Peninsular Malaysia, having submitted multiple tenders for potential infrastructure works — signaling broader competitive ambitions beyond East Malaysia.

The company also noted that, while market conditions continue to evolve, external challenges such as geopolitical tensions in the Middle East remain monitored, and the Board of Directors remains confident in the group’s long‑term prospects.

Industry analysts point out that although the property and construction sector has faced cyclical fluctuations, strong state‑level infrastructure projects in Sarawak, including road, bridge, and utility development plans, are expected to anchor demand for construction services in the medium to long term.

Overall, while Hartanah Kenyalang’s 1Q26 performance shows short‑term headwinds, its forward strategy and project pipeline suggest an improving outlook, buoyed by broader economic development trends and state infrastructure commitments.