Page 13 - Malaysia Builders Directory 2019/2020
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                 MALAYSIA BUILDERS DIRECTORY 2019/2020
 On prospects, the group acknowledges the challenging outlook, but believes products with unique value propositions, strategic locations and attractive prices will continue to generate demand and create sales. In addition, the developer has included affordable and mid-market properties in its launches. The group will continue its smart spending initiative to attain gains from project cost-savings, general and other operational costs to preserve the group’s consolidated margins. The developer is also poised to continue with its asset divestment and land portfolio rebalancing strategy, having earmarked few non-strategic lands for divestment amounting to RM300 million.
Kerjaya Prospek Group Bhd’s (KPGB) net profit for the first quarter ended March 31, 2019 (1QFY19) rose 8.4% year-on-year to RM35.12 million from RM32.35 million, on the back of higher revenue. KPGB said revenue for the quarter came in 3.5% higher year-on-year at RM264.18 million versus RM255.14 million. The increase in revenue was mainly attributed to its construction segment, which currently has a substantial orderbook comprising projects awarded by premier property developers in Malaysia. The property development segment is also expected to contribute positively to the group’s earnings moving forward with the encouraging take-up rate in the group’s property development project in Genting Permai.
On prospects, KPGB said that during 1QFY19, it has secured building contracts worth RM435 million. It targets to secure an orderbook of RM1.2 billion for the financial year ending December 31, 2019 (FY19). In comparison, its orderbook for the full year of FY18 stood at RM989.8 million. KPGB’s current outstanding orderbook stood at RM3.4 billion, which will give earnings visibility in the next three years.
For the nine months ended December 31, 2018, IJM Corporation Bhd’s net profit fell 45.8% to RM178.10 million from RM328.79 million in the previous corresponding
period. Its operating revenue fell by 7.6% to RM4.26 billion from RM4.61 billion due to lower revenue contributed by the construction, manufacturing & quarrying and plantation divisions. At pre-tax profit level, it fell by 40.3% to RM316.37 million from RM529.52 million mainly due to an increase in net unrealised forex losses of RM59.2 million compared with loss of RM8.6 million a year ago. The group also recognised a one-off loss on disposal of its remaining 30% equity interest in Swarna Tollway Private Limited amounting to RM41.4 million in the current period.
On outlook, IJM said its construction division expects a satisfactory performance based on an outstanding order book of RM8.4 billion, underpinned by the implementation of on-going domestic projects. The local property market is expected to remain challenging due to the key issues of price affordability, the overhang of high priced properties, rising costs of living and tight financing arrangements. IJM said its property development division remained steadfast in its efforts to grow its business in view of the strategic locations of its properties and the brand premium that it has established. With unbilled sales of about RM2.2 billion the division is expected to maintain a satisfactory performance in the current financial year.
Gamuda Bhd’s net profit fell 23% to RM173.14 million in the second quarter ended January 31, 2019 (2QFY19) from RM223.64 million in the previous year’s corresponding quarter, as it ceased recognition of its share of profits from Syarikat Pengeluar Air Sungai Selangor (SPLASH). Revenue for the quarter increased 13% to RM1.13 billion from RM998.92 million a year earlier.
Segmentally, the group saw lower construction earnings from Gamuda Engineering due to the reduction in contract value for the Mass Rapid Transit (MRT) Line 2 project. Gamuda Land also posted lower overall property earnings due to lower contribution from its new townships in Malaysia during the quarter, although this was partly offset by its two projects in Vietnam which continued to sell
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