PETALING JAYA: AME Elite Consortium Bhd is expected to see earnings improve in the coming quarters as property sales are progressively recognised, while its construction and property investment businesses continue to provide support, according to research houses.
RHB Research and Phillip Capital Research maintained “buy” calls on AME following the first quarter ended June 30, 2026 (1Q27) results, although their target prices differ.
RHB Research retained the target price (TP) at RM2.30, implying a 71% upside, while Phillip Capital lowered its TP to RM2.01 from RM2.06 following more conservative margin assumptions.
Phillip Capital said: “We expect property development contributions to pick up over the remaining quarters as secured sales are progressively recognised.”
It said 1Q27 results were within expectations, accounting for 22% of its full-year forecast and 23% of street estimates.
AME’s core profit after tax and minority interest came in at RM25mil, down 23% year-on-year (y-o-y), despite revenue rising 4% to RM196mil.
The earnings decline was attributed to lower margins and higher interest costs.
Construction revenue jumped 74% y-o-y, while property investment revenue increased 22%.
RHB Research noted that sequential revenue growth was driven mainly by construction, engineering and property investment, with the latter benefiting from additional factory leases and contributions from the new i-TechValley dormitory.
However, net earnings were weighed down by lower margins from construction and engineering due to the stage of work completed.
Both research houses remain confident about AME’s property sales target. New sales stood at RM62.1mil in 1Q27, while bookings on hand included RM35.4mil in Johor and RM117.2mil from the Northern TechValley @ BKE joint venture in Penang.
“We believe the low numbers were due to the timing to convert into contractual sales, and hence, sales in the coming quarters should pick up,” RHB Research said.
Phillip Capital similarly expects AME to achieve its RM400mil FY27 sales target, supported by RM62mil of new sales and RM35mil of bookings on hand.
The Suling Hill joint venture provides further upside, with RM117.2mil of bookings yet to be recognised.
