Emkay sees net profit at record RM70m this year

The Emkay Group, owned by Tan Sri Mustapha Kamal Abu Bakar, is optimistic its net profit will jump fourfold to a record RM70 million this year, driven by the sale of three buildings in Cyberjaya last year.



They are Bangunan Mustapha Kamal, and two office blocks at MKN Embassy Techzone, bought by Amanah Raya Bhd, a state-owned public trustee company, for RM266 million.

Emkay has locked in RM61.3 million in net profit from the asset sales, Mustapha Kamal said.

It expects revenue to jump threefold to RM325 million, helped by its RM357 million NeoCyber project in Cyberjaya, and its RM600 million gated mixed project on Pulau Banding, Perak.

For the 12 months to December 2008, it made a net profit of RM16.52 million on revenue of RM119 million.

Emkay is in the process of selling the remaining two blocks at Techzone, an information technology park worth RM350 million, developed under a 60:40 partnership with Bangalore's Embassy Group.

Profits from the sale will be recognised in 2010, Mustapha Kamal said.

"We are aiming for RM90.5 million in net profit for 2010, and maintaining that in 2011. I'm optimistic of achieving the targeted growth," he said.

His confidence is boosted by the launch of Techzone Phase 2 next year, which will feature eight purpose-built office blocks, worth almost RM1 billion.

They will be built on 8ha, which Emkay had bought in December from its 75 per cent owned unit, Setia Haruman Sdn Bhd, the master developer of Cyberjaya that spans 2,800ha.

"We are confident of new developments, especially in Cyberjaya, as demand is spurring. We recently bought 1.4ha to build two office blocks for RM150 million. We are launching it next year," he said.

In July this year, Emkay will launch the final phase of NeoCyber, featuring four apartment blocks with 600 units, worth over RM150,000 each.

It is a replica of The Domain serviced apartments, built under the first phase, for RM47 million.

Keys for The Domain were handed over to buyers yesterday, four months ahead of schedule.

This was witnessed by Sepang Municipal Council president Azizan Mohamad Sidin, Cyberview Sdn Bhd managing director Redza Rafiq Abdul Razak, Setia Haruman chief operating officer Lao Chok Keong and a representative from Multimedia Development Corp Wee Huang Neo.

The four firms are the major stakeholders of Cyberjaya.

By Business Times (by Sharen Kaur)