Mutiara in for a good year

KUALA LUMPUR: Mutiara Goodyear Development Bhd expects its development projects in Seberang Prai, Gombak and Ampang to drive its revenue growth for the financial year ending April 30, 2008 (FY08).

Managing director Datuk Edmond Hoyt Yung said these projects – with a total gross development value (GDV) of RM428mil – were expected to be the main revenue contributors to the group in FY08.

“We are confident that Mutiara Upper East Ampang (294 high-end condominiums), Mutiara Gombak (residential development) and Bandar Tasek Mutiara (phases 8E and 9 of the mixed development) will perform well,” he told StarBiz after the company AGM last week.

The company expects to launch its residential development in Mutiara Suria, Cheras, with GDV of RM60mil, and its commercial development, Dataran Prima in Kelana Jaya, with a GDV of RM120mil, by next year.

As at Sept 30, Mutiara had an order book of RM156mil.

Datuk Edmond Hoyt Yung
On the group’s expansion strategy, Yung said it was looking to increase its holding of choice land bank in multiple prime locations within the Klang Valley and Seberang Prai as it had its site offices in these areas.

As part of its expansion, Mutiara, through subsidiary Jurus Positif Sdn Bhd, had recently purchased 4.71 acres in Subang Jaya for RM4mil. Jurus Positif is a 50%-owned subsidiary of Pembangunan Bandar Mutiara Sdn Bhd, which in turn is a wholly-owned subsidiary of Mutiara.

The land was originally approved for residential development. However, the company had agreed to apply to the relevant authorities for amendment of the development into a wholly commercial centre, comprising 35 to 40 units of four-storey shoplots with a proposed development cost of RM49mil. The project is currently at the planning stage.

Mutiara recorded an improved net profit of RM5.39mil on revenue of RM61.95mil for the first quarter ended July 31, compared with RM5.21mil and RM48.36mil respectively in the previous corresponding period.

However, earnings per share fell to 0.95 sen from 3.15 sen previously.

By The Star (By Laalitha Hunt)