The company fell into the red in fiscal year 2008, recording a net loss of RM60.8 million. However, it returned to profitability in the financial year ended June 30 2009, posting a net profit of RM18.3 million.
MK Land's redesignated executive chairman, Tan Sri Mustapha Kamal Abu Bakar, said the growth projection was based on its renewed business strategy of focusing on saleable products such as affordable homes with high profit margins.
"The group now has a roadmap whereby all MK Land 'citizens' will concentrate on selling a basket of products, which include residential, commercial and office buildings.
"For example, we plan to launch 40,000 low-cost houses which can bring us high profit margins. We have the same people, landbank and products to achieve the growth," he told reporters after the group's annual general meeting in Petaling Jaya yesterday.
Mustapha Kamal, through the privately-held Emkay group of companies, owns 47 per cent of MK Land.
About one and a half years ago, Mustapha Kamal relinquished his executive position in MK Land to focus on the Emkay group. However, he assumed the chief executive post in June this year to help MK Land regain its footing.
"We have managed to register average monthly sales of RM11.3 million for the past one year, compared with RM7.6 million in 2008 which had contributed to the loss.
"Hopefully, the average monthly sales can climb to RM51.3 million in the coming months," he said.
MK Land's five-year sales drive will cover 30 per cent of its landbank of 3,239ha nationwide.
Mustapha Kamal said that global recession notwithstanding, the company expects the domestic property market to recover.
MK Land is confident of riding out the slowdown through strategies like targeting landed property products at niche markets, he added.
By Business Times (by Zaidi Isham Ismail)
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