Mah Sing meets RM1b full-year sales target in 7 months

Property developer Mah Sing Group Bhd says its second-quarter net profit rose by more than a quarter and it has met its RM1 billion full-year sales target in just seven months.

The group has now set a new sales target of RM1.5 billion as it prepares for new launches for the rest of the year.

"The group is confident it will be able to achieve satisfactory results for the current financial year.

" This is in view of the strong sales already locked in from its balanced and diversified property portfolio," Mah Sing said in a statement to Bursa Malaysia yesterday.
Mah Sing reported a net profit of RM29.2 million for the quarter to June 30 2010, which was 27 per cent higher than RM23 million recorded in the same quarter of last year.

For the quarter under review, the group's revenue almost doubled to RM289.1 million.

On a six-month basis, Mah Sing's net profit rose by a quarter to RM57 million on the back of RM527.4 million revenue, a two-thirds jump.

The better revenue and profit were contributed by several of the group's new projects such as Southgate Commercial Centre, StarParc Point, i-Parc@Bukit Jelutong, Perdana Residence 2, Aman Perdana, Hijauan Residence and Kemuning Residence in Klang Valley.

Its plastics division also reported improved revenue and profit.

Mah Sing is now planning some 10 new projects. Among the launches and previews are One Legenda designer bungalows which prices start from RM3.5 million, Kinrara Residence Link Homes (from RM718,800) and Garden Plaza serviced suites in Cyberjaya (from RM228,800).

"Our launches have always been eagerly awaited. Over the weekend we've already had people queuing up for our Kinrara Residence," said managing director Tan Sri Leong Hoy Kum.

On Bursa Malaysia yesterday, shares of Mah Sing closed 1.1 per cent higher to RM1.84.

By Business Times

Selangor Dredging bullish on sales

SELANGOR Dredging Bhd expects future earnings to improve as it aims to launch several new projects in Klang Valley and Singapore worth a combined RM1 billion over the next two years.

Its unbilled sales of RM650 million from its recent launches namely Five Stones in Petaling Jaya, 20trees West in Kuala Lumpur and Gilstead Two in Singapore will also drive growth, chairman Eddy Chieng Ing Huong said.

Last year, Selangor Dredging posted a net profit of RM18 million, four per cent more than in 2008.

"We will continue to capitalise on the projects we have launched. From the unbilled sales, it is quite clear the company will do well," Chieng said after the company's shareholder meeting in Kuala Lumpur yesterday.
Selangor Dredging has five ongoing projects, two in Taman Melawati in Kuala Lumpur, one in Petaling Jaya and two in Singapore worth RM1.2 billion, which will last another four years.

Chieng said the projects have garnered an average 80 per cent sales over the past 12 months.

The condominiums and bungalows are priced at more than RM1 million and RM3.5 million, respectivly. For the project in Singapore, the apartments are worth more than S$1.8 million (RM4.8 million) each.

"We are able to sell our projects at a premium because of the concept. Our purchasers like what we sell and we do not price ourselves like a commodity.

"A lot of our purchasers buy a collection of properties here and in Singapore. Buyers are very discerning. Even during bad times they buy," he said.

Chieng said in the next six months it will launch Dedaun off Jalan Ampang, comprising low-rise condominiums, and 262, Balestier Road in Singapore, which is a commercial and residential development, both worth some RM350 million.

It then plans to launch high-end apartments in Batu Feringgi in Penang, a commercial development next to Five Stones, landed housing in Puchong and Dengkil, and a residential project in Singapore.

On the controversial Damansara 21 hillslope project in Bukit Damansara, Chieng said the company is awaiting the approval from the authorities, including City Hall, on when works can start.

A stopwork order was issued some 30 months ago on the project, which consists of 21 bungalows priced RM10 million to RM15 million each, following the Bukit Antarabangsa landslide incident.

By Business Times

Olympia aborts sale of flagship building

PETALING JAYA: Olympia Industries Bhd has decided to abort the proposed disposal of its flagship corporate building Menara Olympia in Kuala Lumpur to Jelita Timur Sdn Bhd.

It announced to Bursa Malaysia yesterday that Jelita Timur said it would withdraw from the transaction due to the delay on Olympia’s part in obtaining the requisite approvals to date and the inability of the company to complete the sale at this juncture.

“Provided the company is able to refund the deposit paid by the purchaser (Jelita Timur) of RM3.015mil in full together with interest earned, the purchaser will not deem the company to be in breach of its obligations as set out in the sale and purchase agreement dated April 9, 2010.

“In view of the uncertainties regarding the transaction, the board of Olympia has deliberated on the commercial and legal aspects of the transaction and has unanimously agreed that it is in the best interest of the company to mutually abort the transaction,” it said.

In June, Olympia received a directive from Bursa to conduct a second valuation on Menara Olympia and the adjoining car park, with the professional valuer to be appointed by Bursa Malaysia Securities. The valuer was appointed last month.

Bursa Securities had also instructed Olympia not to complete the sale of its wholly-owned subsidiary Dairy Maid Resort & Recreation Sdn Bhd, which owns and manages the building, without prior consultation with the regulator.

Olympia entered the agreement with Jelita Timur for the sale of 100% equity interest in Dairy Maid Resort & Recreation in April.

The agreed value of the leasehold land and building known as Menara Olympia was RM190mil and the agreed value of the rights to operate the car park granted by the Government (which will expire on Dec 26, 2025) was RM10mil.

The properties to be sold were charged to secure combined debts of about RM172.5mil outstanding as of the date of the agreement.

Under the agreement, Dairy Maid would be subject to the liabilities under a loan to be obtained by Jelita Timur for the company to redeem the Olympia securities comprising RM49.118mil redeemable unsecured loan stocks and RM70.682mil irredeemable convertible bonds and the loan facility of RM52.72mil obtained by Dairy Maid which were secured against legal charges created over Menara Olympia.

By The Star

UEM Land 2Q profit jumps 583% to RM40.3m

KUALA LUMPUR: UEM LAND HOLDINGS BHD's net profit for the second quarter ended June 30, 2010, (2Q10) jumped an impressive 583% to RM40.34 million from RM5.90 million a year ago in line with higher revenue and gain of RM25.6 million on the disposal of an associate, Touch 'N Go Sdn Bhd to PLUS Expressway Bhd.

Its revenue for the quarter rose 28.1% to RM88 million from RM68.68 million previously due to higher revenue from sales of industrial land in Southern Industrial Logistics Clusters, developed land sales in Puteri Harbour and higher sales of development properties in Nusa Idaman.

Earnings per share was 1.23 sen in 1Q10 versus 0.21 sen in the same quarter last year, while net assets per share was 70 sen.

For the six months ended June 30, 2010 (1H10), UEM Land net profit was RM43.48 million versus RM8.53 million a year ago, on the back of a revenue of RM127.7 million.

On its prospect for the current financial year, UEM Land said it was confident that the property market would continue its recovery in line with the encouraging Gross Domestic Product (GDP) growth achieved by the country for the first half of 2010.

"The property market in Johor generally, and Iskandar Malaysia specifically is expected to further benefit from the recent increase in interest from Singapore,'' it said in a filing to Bursa Malaysia Securities on Friday, Aug 27.

The group said it would continue to launch new residential projects in Nusajaya as well as launch new phases of its existing residential projects in Nusajaya and Cyberjaya in the coming months.

"The group will continue to evaluate opportunities to acquire strategic land parcels outside Nusajaya to further expand and grow our business to create sustainable return on investment for our shareholders," it said.

By The EDGE Malaysia