Last year, its net profit declined to RM6.67 million as most of its projects neared completion.
The projected numbers, however, are based on current accounting standards, Magna Prima chief executive officer Yoong Nim Chee said.
He added that the company has projected some RM150 million to RM200 million revenue this financial year from RM1 billion of projects that it will be launching.
"This year, revenue will be maintained at around last year's level of RM191 million, but profit will be up primarily because we are starting new projects with better profit profiles," Yoong told reporters after Magna Prima's annual general meeting in Kuala Lumpur yesterday.
The projects include residential developments in Selayang, Selangor, and Bukit Jalil in Kuala Lumpur. Magna Prima will also be launching commercial projects in Shah Alam and Petaling Jaya, both in Selangor, and in Jalan Kuching, Kuala Lumpur.
Magna Prima, which saw some 16.8 per cent of revenue last year from construction and engineering activities, said it will not be aggressively seeking external construction jobs but will focus on in-house projects.
With the exception of the land in Jalan Ampang on which the Lai Meng Chinese School sits, the group expects to complete all of its ongoing projects by 2014. Currently, it has some 30.38ha landbank.
It also expects to begin the proposed RM1.3 billion commercial and residential development on the site of the Lai Meng Chinese School in 2012 as planned and to complete it by 2015.
The company is hopeful that the Ministry of Education will give its approval within the next three months for the school to be relocated to Bukit Jalil.
Magna Prima, which will provide advice on design in the construction of the school, said that tenders will be called out and that it will also bid for the project.
While Yoong was not able to state the estimated project value, he said the school was looking at including a swimming pool and an auditorium.
To a question on new shareholders Lee Ban Chuan and Lee Hing Lee, who have emerged in the company via Fantastic Realty Sdn Bhd which now owns 15.41 per cent of Magna Prima, Yoong said he understood that they were passive investors and that there had been no indication that they would raise their stake in the company.
On the police report made against its former chief executive officer, Lim Ching Choy, for alleged criminal breach of trust, Yoong said that there had been no developments.
By Business Times
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