Property

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.