Berjaya Property Berhad Q3 2026 Results: Key Developments, Legal Battles, and Risks That Could Move the Market

Summary of Q3 2026 Financial Performance

Berjaya Property Berhad (formerly known as Berjaya Land Berhad) has released its unaudited results for the third quarter and nine months ended 31 March 2026. The Group reported a challenging period, marked by a significant decline in both revenue and profit, and several high-profile legal cases that could have a material impact on shareholders’ value and the Group’s financial position.

Key Financial Highlights

• Q3 Revenue: RM1.83 billion, down 14% from RM2.13 billion in Q3 2025.
• Q3 Profit Before Tax (PBT): RM1.25 million, a steep drop from RM34.69 million last year (-96%).
• 9M Revenue: RM5.49 billion, down 3% from RM5.64 billion in the previous period.
• 9M PBT: RM6.99 million, down 95% from RM138.98 million previously.
• Net Loss Attributable to Owners (9M): RM184.68 million (vs RM87.35 million loss last year).
• Net Assets Per Share: RM0.65 (down from RM0.72 at 30 June 2025).
• No dividend declared for the quarter.

Key Drivers of Performance

• Lower Revenue:
  • STM Lottery: Fewer draws (41 vs 42) and lower accumulated jackpot led to lower sales.
  • H.R. Owen (UK Motor Dealership): Lower new and used car sales, extended vehicle product life cycles, and negative forex translation hit revenue.
  • Hotels & Resorts: Lower overall occupancy rates due to fewer tourist arrivals, especially post-festive season.
• Mitigating Factors: Higher revenue from property development (notably Residensi Oak, Bukit Jalil and Pangsapuri Azalea, Subang Heights) and higher average room rates at hotels in earlier quarters.
• Operating Expenses: Higher statutory employment costs in the UK (due to new labour regulations) and increased prize payout in the lottery business further eroded profits.

Litigation & Legal Risks – Major Developments

1. BCity Project (Sungai Besi & Sungai Tinggi Land Dispute)

• Background: Long-running dispute regarding the acquisition and development of major land parcels in Sungai Besi and Sungai Tinggi, involving Berjaya Tagar Sdn Bhd (BTSB), Berjaya City Sdn Bhd (BCity), and Selangor Turf Club.
• Federal Court Victory: On 30 October 2023, the Federal Court ruled in favour of Berjaya, ordering the Selangor State Government to compensate the Group for losses suffered due to delays since 2008. The High Court awarded RM38.33 million in compensation on 5 June 2025.
• Appeals Ongoing: Both Berjaya and the State Government have appealed portions of the compensation decision. Case management and hearing for the appeals are set for November 2026.
• Execution: Despite ongoing appeals, the State Government was ordered to pay the RM38.33 million compensation after losing a stay of execution application in April 2026.
• Shareholder Impact: This legal win, and any further upside from appeals, could result in significant non-operating income and improve Group liquidity. However, the ongoing nature of the appeals introduces uncertainty.

2. GMOC (China Great Mall Project) Arbitration

• Background: Disposal of Berjaya (China) Great Mall Recreation Centre to Beijing SkyOcean for RMB2.039 billion. The buyer defaulted on the final instalment.
• Arbitration Win: Berjaya was awarded RMB974.07 million plus interest and costs in 2020. Only RM17.5 million has been recovered so far, with further enforcement ongoing in China and Hong Kong.
• Key Risks: Recovery of the full amount remains uncertain due to asset freezes and bankruptcy of the primary guarantor. This could be a material write-off or windfall, depending on the outcome.

3. Amat Muhibah Sdn Bhd (AMSB) Tax Dispute

• Background: Inland Revenue Board raised an additional assessment of RM66.44 million for YA2017, which AMSB disputes.
• Legal Process: The case has gone through several rounds of litigation, including judicial review, appeals, and now awaits trial at the Special Commissioners of Income Tax in December 2026.
• AMSB Winding Up: In January 2026, AMSB entered creditors’ voluntary winding up and ceased to be a subsidiary. The High Court dismissed IRB’s writ action for the tax but left the door open for fresh litigation.
• Shareholder Impact: The risk of a material tax liability remains, but the company has now been wound up, potentially limiting Group exposure.

Balance Sheet and Borrowings

• Total Assets: RM14.63 billion as at 31 March 2026.
• Net Equity: RM3.20 billion (attributable to shareholders), RM1.93 billion (non-controlling interests).
• Total Borrowings: RM4.85 billion (short-term: RM1.79b, long-term: RM3.07b), mostly secured and diversified across multiple currencies.
• Net Assets Per Share: RM0.65 (vs RM0.72 as at 30 June 2025).

Operational Developments

• Segment Performance:
  • Toto Betting: Remains the largest revenue contributor but saw lower sales and profits due to fewer draws and lower jackpots.
  • Motor Vehicles: H.R. Owen’s performance was dampened by weak sales, margin pressure, and forex losses.
  • Hotels & Resorts: Softer occupancy and average room rates post-festive season, though higher rates earlier in the year helped mitigate some losses.
  • Property Development: Outperformed due to strong progress billings at key projects.
• No Dividend: The board did not recommend any dividend for the quarter.

Forward-Looking Statements

• Outlook: Management is cautiously optimistic for the remainder of FY2026, expecting improvement from domestic operations, resilient consumer spending, and tourism. The NFO segment is expected to remain a market leader.
• Risks: Persistent legal uncertainties, foreign exchange volatility, higher operating costs, and slow asset recovery in China could impact future performance and share price.

Potential Share Price Impact & What Investors Need to Watch

• Major Legal Wins: The RM38.33 million compensation award (with potential upside on appeal) is a positive catalyst, but appeals are pending.
• GMOC Award Recovery: Any significant recovery from Beijing SkyOcean (China) would be a positive surprise and could materially boost profits and cash position.
• Tax Risk: The winding up of AMSB reduces direct Group exposure, but the tax risk could resurface if the IRB pursues further action.
• Operational Weakness: The sharp drop in revenue and profits, especially in core segments, is a negative and may weigh on share price until a turnaround materialises.

Conclusion

Investors should monitor the outcome of ongoing legal cases, especially regarding the BCity compensation and China GMOC recovery, as these could have a significant impact on the Group’s earnings and balance sheet. The weak underlying operating performance and absence of dividends are negatives, but legal wins and potential asset recoveries are key upside risks.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell shares in Berjaya Property Berhad. Investors are advised to conduct their own research and consult with a qualified financial advisor before making investment decisions. All information is based on the unaudited interim financial report for the period ended 31 March 2026, and subsequent events or changes in circumstances may affect the accuracy or relevance of this analysis.

Laporan Q3 2026 Berjaya Property Berhad: Perkembangan Utama, Isu Undang-Undang, dan Risiko Penting untuk Pelabur

Ringkasan Prestasi Kewangan Suku Ketiga 2026

Berjaya Property Berhad (dahulu dikenali sebagai Berjaya Land Berhad) telah mengumumkan keputusan tidak diaudit bagi suku ketiga dan sembilan bulan berakhir 31 Mac 2026. Kumpulan mencatatkan penurunan ketara dari segi hasil dan keuntungan, serta beberapa kes undang-undang berprofil tinggi yang boleh memberi impak material kepada nilai pemegang saham dan kedudukan kewangan kumpulan.

Sorotan Kewangan Utama

• Hasil Suku Ketiga: RM1.83 bilion, turun 14% dari RM2.13 bilion tahun lepas.
• Keuntungan Sebelum Cukai (S3): RM1.25 juta, merosot dari RM34.69 juta tahun lepas (-96%).
• Hasil 9 Bulan: RM5.49 bilion, turun 3% dari RM5.64 bilion sebelum ini.
• Keuntungan Sebelum Cukai 9 Bulan: RM6.99 juta, turun 95% dari RM138.98 juta sebelum ini.
• Rugi Bersih Boleh Diperuntukkan kepada Pemilik (9 Bulan): RM184.68 juta (berbanding rugi RM87.35 juta tahun lalu).
• Aset Bersih Sesaham: RM0.65 (turun dari RM0.72 pada 30 Jun 2025).
• Tiada dividen diisytiharkan untuk suku ini.

Pemacu Prestasi Utama

• Penyusutan Hasil:
  • STM Lottery: Jumlah cabutan kurang (41 vs 42) dan jackpot terkumpul lebih rendah.
  • H.R. Owen: Jualan kereta baru & terpakai lebih rendah, kitaran produk panjang, serta kesan terjemahan mata wang negatif.
  • Hotel & Resort: Kadar penginapan lebih rendah pasca musim perayaan, pengunjung kurang.
• Faktor Mitigasi: Hasil lebih tinggi dari pembangunan hartanah (projek Residensi Oak, Bukit Jalil & Pangsapuri Azalea, Subang Heights) dan kadar bilik hotel lebih tinggi pada awal tahun.
• Perbelanjaan Operasi: Kos pekerja wajib lebih tinggi di UK dan pembayaran hadiah lebih tinggi dalam perniagaan loteri menjejaskan keuntungan.

Isu Undang-Undang & Risiko Material – Perkembangan Penting

1. Projek BCity (Pertikaian Tanah Sungai Besi & Sungai Tinggi)

• Latar Belakang: Pertikaian berpanjangan mengenai pemilikan dan pembangunan tanah utama melibatkan BTSB, BCity, dan Selangor Turf Club.
• Kemenangan di Mahkamah Persekutuan: Pada 30 Oktober 2023, Mahkamah Persekutuan memihak kepada Berjaya, memerintah Kerajaan Negeri Selangor membayar pampasan RM38.33 juta atas kerugian sejak 2008.
• Rayuan Berterusan: Kedua-dua pihak merayu sebahagian keputusan. Pendengaran dijadualkan pada November 2026.
• Pelaksanaan: Kerajaan Negeri diarahkan membayar RM38.33 juta walaupun rayuan masih berjalan.
• Kesan Kepada Pemegang Saham: Pampasan ini, dan potensi penambahan jika rayuan berjaya, boleh menjadi katalis positif, namun ketidaktentuan masih wujud.

2. Prosiding Arbitrasi GMOC (Projek Great Mall China)

• Latar Belakang: Penjualan Great Mall kepada Beijing SkyOcean gagal dibayar penuh, arbitrasi memberi kemenangan kepada Berjaya (RMB974.07 juta + faedah), tetapi hanya RM17.5 juta berjaya dipulihkan setakat ini.
• Risiko Utama: Pemulihan penuh belum pasti kerana kekangan aset dan kebankrapan penjamin utama.

3. Pertikaian Cukai Amat Muhibah Sdn Bhd (AMSB)

• Latar Belakang: Cukai tambahan RM66.44 juta untuk YA2017, AMSB tidak bersetuju dan kini dalam proses guaman panjang.
• AMSB Dilupuskan: AMSB kini telah dilupuskan secara sukarela oleh pemiutang dan bukan lagi anak syarikat. Mahkamah Tinggi menolak tindakan IRB buat masa ini.
• Kesan Kepada Pemegang Saham: Risiko liabiliti cukai material berkurang, tetapi masih boleh timbul semula jika IRB mengambil tindakan lanjut.

Kunci Kira-Kira & Pinjaman

• Jumlah Aset: RM14.63 bilion pada 31 Mac 2026.
• Ekuiti Bersih: RM3.20 bilion (pemegang saham), RM1.93 bilion (kepentingan bukan kawalan).
• Jumlah Pinjaman: RM4.85 bilion, kebanyakannya bercagar dan dalam pelbagai mata wang.
• Aset Bersih Sesaham: RM0.65.

Perkembangan Operasi

• Prestasi Segmen:
  • Loteri Toto: Masih penyumbang utama hasil tetapi jualan & keuntungan lebih rendah.
  • Kenderaan: Prestasi lemah H.R. Owen akibat jualan, margin, dan forex.
  • Hotel & Resort: Kadar penginapan dan purata harga bilik rendah pasca perayaan.
  • Pembangunan Hartanah: Cemerlang hasil bil penyiapan projek utama.
• Tiada Dividen: Lembaga tidak mencadangkan dividen untuk suku ini.

Pandangan Hadapan & Risiko

• Pandangan: Pengurusan optimis secara berhati-hati untuk baki tahun kewangan, dengan jangkaan pemulihan dalam permintaan domestik dan pelancongan.
• Risiko: Ketidaktentuan undang-undang, turun naik pertukaran mata wang, kos operasi meningkat, dan pemulihan aset perlahan di China boleh memberi impak kepada prestasi masa depan dan harga saham.

Kesimpulan

Pelabur perlu memantau perkembangan kes undang-undang, terutamanya pampasan BCity dan pemulihan GMOC di China, kerana ia boleh memberi impak material kepada pendapatan dan imbangan kumpulan. Prestasi operasi yang lemah dan ketiadaan dividen adalah negatif, namun kemenangan undang-undang dan potensi pemulihan aset adalah risiko positif utama.

Penafian: Artikel ini adalah untuk tujuan maklumat sahaja dan bukan nasihat kewangan atau cadangan untuk membeli atau menjual saham Berjaya Property Berhad. Pelabur digalakkan membuat kajian sendiri dan mendapatkan nasihat daripada penasihat kewangan bertauliah sebelum membuat keputusan pelaburan. Semua maklumat adalah berdasarkan laporan kewangan interim tidak diaudit untuk tempoh berakhir 31 Mac 2026, dan sebarang perubahan selepas itu boleh menjejaskan ketepatan analisis ini.

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