Property

KUALA LUMPUR: Property developer MGB Bhd saw its net profit surge three-fold, reaching RM51.1 million for the fourth quarter (Q4) ended December 31, 2023 (FY23) on the back of profit before tax (PBT) of RM69.2 million. Earnings per share improved from 2.55 sen to 8.25 sen for FY23, resulting in a price-to-earnings ratio of 10.6 times, based on the closing share price of RM0.87. After three consecutive quarters of positive financial performance, the growth momentum culminated in Q4 FY23, with revenue soaring by 109.7 per cent to RM305.3 million year-on-year (YoY). Higher contributions from the construction, trading, and property development segments drove this surge. The construction and trading segment recorded a 73.5 per cent increase in revenue, reaching RM241.5 million, while the property development segment recorded a nine-fold improvement, amounting to RM63.9 million. Consequently, the PBT and net profit surged 170.1 per cent and 259.9 per cent, reaching RM18.4 million and RM13.7 million, respectively. MGB recorded revenue of RM971.8 million for the full year, marking a 58.6 per cent increase from the previous year’s RM612.8 million. This substantial growth was primarily driven by a 45.4 per cent increase in revenue from the construction and trading segment, amounting to RM856.2 million. The surge was propelled by Idaman BSP, KITA Sejati, Prestige, and KITA Mekar projects. Furthermore, the property development segment’s revenue saw an impressive surge of 385.5 per cent to RM115.6 million, attributed to higher progress billings for the Idaman Melur and Idaman Cahaya Phase 1 projects, along with the delivery of vacant possession for Laman Bayu Phase 3 and Phase 4 projects. MGB group executive chairman Tan Sri Ir (Dr) Lim Hock San said this net profit is the highest the company has recorded thus far, thanks to its operational efficiency and strategic decision-making. “These positive results reflect the dedication and hard work of every member of the MGB family. Each individual, from our skilled workforce to our visionary leadership team, has been pivotal in driving the company’s success. “We are excited about the opportunities and confident in capitalising on them. With a solid track record of success, a strong team, and a clear strategic vision, we can navigate any challenges arising from uncertainties and seize the vast potential that awaits us,” Lim said in a statement. Moving into 2024, Lim said the company is cautiously optimistic about continue delivering commendable financial performance. He said this is supported by an outstanding order book of approximately RM1.2 billion and unbilled sales of RM0.7 billion from ongoing property projects with a gross development value (GDV) of approximately RM1.2 billion across the board. “Additionally, the two purchase orders that we received from Sany Alameriah totalling RM119.55 million for the supply and installation of 400 villas in Roshn Alarous development, north of Jeddah, is very encouraging to our performance and branding. “This should contribute positively to our revenue for 2024, and as our first international order, we look forward to applying our expertise in construction and  industrialised building system (IBS) precast technology to deliver the best product to our customers,” Lim said.

KUALA LUMPUR: Pelaburan Hartanah Bhd (PHB), the operational arm of Yayasan Amanah Hartanah Bumiputera, attained long and short-term corporate credit ratings of AAA and P1, respectively, from RAM Rating Services Bhd. The assigned ratings, accompanied by a stable outlook, reflect PHB’s robust financial health in meeting its financial obligations, supported by its strategic role in carrying out the government’s mandate to increase Bumiputera ownership and participation in the country’s commercial real estate sector. PHB group managing director and chief executive officer Mohamad Damshal Awang Damit said PHB’s success stems from acquiring commercial real estate in strategic locations around Malaysia. “This is achieved by maintaining financial discipline and balancing rapid expansion with prudent financial management, as seen in our robust balance sheet and optimal liquidity position, to carry out our mandate successfully,” he said in a statement. Since its incorporation in 2006, PHB has grown its real estate portfolio exponentially, reaching RM11 billion by the end of October last year and is on track to reach RM25 billion by 2030. PHB’s commitment to enabling ownership participation by the Bumiputera is realised through the injection of the beneficial ownership of its real estate assets into the Shariah-compliant Amanah Hartanah Bumiputera (AHB) unit trust fund. Further, PHB’s financial position is strong, with a healthy gearing ratio of 0.28 times and significant financial flexibility in the form of a large available credit line as of December 2022 to meet its short and long-term obligations. Tangible government support through monetary and non-monetary assistance, e.g., tax exemption schemes and grants, helps fund PHB’s property acquisitions and development projects and supplement its operational cashflows. RAM Ratings chief executive officer Awang Za’aba Awang Mahmud said as the government prioritises more prudent financial management, the agency believes the domestic capital market can be a good alternative source of funding for other similar government agencies to contribute to nation-building. “PHB’s commendable credit standing demonstrates its dedication to transparency, enabling the company to expedite its expansion ambitions and provide diversification benefits to investors while also helping advance Bumiputera economic wellbeing, in line with the broader national development agenda,” he said. The AHB is currently valued at RM4.85 billion, benefiting over 70,000 Bumiputera investors in Malaysia with a stable stream of yearly dividends ranging from 4.7 per cent to 7.5 per cent between 2011 and 2023.

KUALA LUMPUR: Property player UEM Sunrise Bhd has collaborated with Alliance Bank Malaysia Bhd to partner in the Alliance Home Complete programme. This partnership signifies progress in making home ownership easily accessible and enhances the home-buying experience. This financing solution aims to offer flexibility to homeowners by providing additional loans of up to 10 per cent of the property value, or a maximum of RM150,000. UEM Sunrise chief executive officer Sufian Abdullah said an initiative designed to empower homeowners to customise their living spaces for renovations and interior design, we ensure they are worry-free of initial cash outlay. “The primary objective at UEM Sunrise is to create homes that cater to the diverse needs and aspirations of our customers. “We hope that this creative collaboration with Alliance Bank, would help our customers with the extra boost to help them settle in their dream homes better,” he said in a recent statement. Sufian said partnering with Alliance Bank to offer alternatives beyond the conventional financing solutions is part of the company’s ongoing commitment to empower home-buyers in not only reducing financial burdens but also making their homeownership journeys hassle-free and enjoyable. Alliance Bank group chief consumer banking officer Gan Pai Li said the bank aims to provide financing packages that meet its customers’ evolving needs. “With Alliance Home Complete financing, homeowners shall gain immediate access to funds in realising their dream homes. “This exclusive offering is coupled with Alliance Bank’s mortgage products, to ensure a more streamlined and efficient application experience for the homebuyers. “Moreover, customers can now enjoy lower interest rates with us upon purchasing UEM Sunrise’s green-certified properties”, she said. UEM Sunrise is optimistic about the Alliance Home Complete programme, envisaged to drive better take-up rates for the company’s participating projects. The projects include 2023’s key launches in Klang Valley such as The MINH, The Connaught One, and Serene Heights Intrika, while Aspira Gardens, Aspira Parkhomes and Senadi Hills 2A are based in Johor.

KUALA LUMPUR: Gamuda Land, the property arm of Gamuda Bhd, recently signed a memorandum of understanding (MoU) with Digital Nasional Bhd (DNB) to expand 5G services in Gamuda townships.   Under the MoU, both parties will engage in fostering collaboration, knowledge exchange, exploration of 5G possibilities and the expansion of 5G service coverage and infrastructure within Gamuda Land townships – namely Gamuda Cove @ Kuala Langat, Gamuda Gardens @ Sungai Buloh North and twentyfive7 @ South of Kota Kemuning. Gamuda Land chief operating officer for strategic operations Jess Teng said the essence of a smart city lies in its ability to seamlessly connect diverse urban functions, ranging from traffic management and energy systems to waste disposal. She said this integration of functions leverages data to enrich services, elevate the quality of life, and promote environmental sustainability. “As township developers, strategic infrastructure planning is paramount to ensure we future-proof our townships. “Recognising the critical role of 5G technology, our strategic partnership with DNB becomes a catalyst for realising our smart city vision. “Together, we aspire to craft interconnected and innovative townships, harnessing the power of 5G to elevate the living experience for our residents,” Teng said in a recent statement. DNB chief strategy officer Datuk Ahmad Zaki Zahid said that the adoption of 5G by both the public and enterprises in the country is gaining momentum. “As of end-December 2023, Malaysia has recorded 8.2 million 5G service subscriptions, representing an adoption rate of 24.7 per cent. “We are also thrilled to see that enterprises have begun to explore the opportunities made possible by 5G. “5G is undeniably the key to the future of smart cities and townships. We look forward to supporting Gamuda Land’s smart township aspirations,” he said. The partnership with DNB marks the next step in realising the smart city vision. Harnessing 5G technology, Gamuda Land has developed a real-time dashboard to continuously monitor its environmental, social, and governance (ESG) initiatives. As an integral component of the landmark Gamuda Green Plan, this dashboard is set to undergo substantial improvements harnessing the capabilities of 5G, providing immediate insights into carbon emissions offsets, advancements in sustainability and more. “With the integration of 5G, providing enhanced real-time data to our Green Initiatives dashboard, we are setting new standards for transparency and accountability in the real estate development industry. “The inclusion of this dashboard in our experience gallery highlights our steadfast dedication to sustainable practices and community engagement,” Teng said.

KUALA LUMPUR: Kerjaya Prospek Group Bhd has bright prospects from more contract wins in the coming quarters following a positive third quarter (Q3) FY23 earnings. Mercury Securities Sdn Bhd said the company’s positive advancements in construction activities and contributions from the Vue@Monterez project in the property segment lifted its Q3 earnings. “The Q3 results met our expectations, with an accomplishment of 68.4 per cent and 66.6 per cent of our full-year revenue and profit forecasts for FY23. “We revise our revenue and profit forecast upward by 8.6 per cent and 6.6 per cent for FY23 due to the acquisition of new contracts,” Mercury Securities said in a note today. Kerjaya Prospek boasts a robust net cash reserve amounts to RM204.2 million as of September 30, 2023, and this substantial financial buffer strategically positions the company for potential future project expansion. The company’s order book stands at RM4.7 billion as of September 30, 2023, with RM2.0 billion from related parties and RM900 million from infrastructure projects. An RM404 million contract with BCM Holding Sdn Bhd (BHSB) was terminated, effectively reducing the order book to RM4.3 billion, and Kerjaya Prospek filed an RM20 million damages claim against BHSB. To recap, Kerjaya Prospek Bhd is seeking RM20 million in termination damages from BHSB, a subsidiary of Ecofirst Consolidated Bhd. This demand follows BHSB’s unexpected decision to cancel the RM404.35 million residential project awarded to Kerjaya Prospek in June this year. Mercury Securities said Kerjaya Prospek remains confident in achieving and maintaining their target order book replenishment of RM1.5 billion for FY24. Additionally, from August to September 2023, the company has acquired several noteworthy contracts. The projects include a high-rise building job in Bandar Putra Permai by UEM Sunrise Bhd valued at RM125 million, a concrete structure work for a factory in Melaka from Samsung-KP JV valued at RM142.2 million, a high-rise development contract valued at RM226 million from Aspen Vision Sdn Bhd, and the construction and completion of 69 units of 3-storey semi-detached and terrace houses on Andaman Island, Penang, from E&O Bhd valued at RM104.7 million. The company won nine construction contracts in 2023, bringing the year-to-date (YTD) contract wins to RM1.6 billion, including the project value with BHSB. “We maintain a Buy recommendation on Kerjaya Prospek with a revised target price of RM1.66, up from RM1.46, aligning with its FY23 earnings-per-share (EPS) of 11.5 and a price-to-earnings (PE) ratio of 14.4x, which is consistent with the two-year average. Kerjaya Prospek remains our favourite in the construction sector due to its attractive valuations,” Mercury Securities noted. Key risks are failure to secure new projects, unforeseen project cancellations, delays or postponements, and unanticipated increases in construction costs.