WCT plans two more malls

WCT managing director Taing Kim Hwa (left) at the Paradigm Mall launch

PETALING JAYA: WCT Bhd plans to add two more shopping malls to its portfolio to create a steady stream of income to the group.

WCT's maiden retail project, AEON Bukit Tinggi Shopping Centre, was opened in Klang in 2007 and is currently leased to retailer Aeon Co Bhd while its second, the Paradigm Mall, was launched yesterday.

Executive director Choe Kai Keong said WCT's third mall, at KL International Airport 2 (KLIA2) integrated complex, was targeted to be opened by April next year.

“We will be managing the 350,000-sq-ft shopping mall ourselves. Meanwhile, the fourth mall will be part of a 60-acre mixed development in Overseas Union Garden with an expected total gross development value of RM4bil.

“We are in the midst of acquiring the land now,” he said after the launching of Paradigm Mall in Petaling Jaya yesterday.

WCT Land Sdn Bhd general manager Ben Chong said Paradigm Mall would be managed by WCT itself.

“After the experience and learning curve of our first mall in Bukit Tinggi, we are now prepared to manage a mall on our own.

“This would allow us to have the ultimate control on rental rates and other extra income generation,” he said.

By The Star

Mah Sing may gain up to 25% margins from Southville

KUALA LUMPUR: Property developer Mah Sing Group Bhd is expected to benefit from its latest land purchase in Bangi, Selangor, due to the large pre-tax profit margins the company can gain from the development.

Analysts said the development of Southville City on the Bangi land could achieve pre-tax profit margins of up to 25%.

The project would be developed on a 408-acre freehold land and four-acre leasehold land.

Maybank Investment Bank Bhd analyst Wong Wei Sum said in a report that the development, slated for a launch in the first-half of 2013, could translate into a net profit of RM50mil per annum or six sen per share. This is on the assumption of a 25% pre-tax profit margin and an eight-year development period.

She has retained a “hold” rating on the stock on the premise that higher interest costs had lowered the company's 2012-2013 net profit forecasts by 0.2% to 1.2% and had also raised net profit forecast for 2014 by 4.7%.

“Post-acquisition, Mah Sing's net gearing would jump to 0.6 times from 0.3 times as at end-Dec 2011. There's no change to our RM2.95 revised net asset value estimate,” Wong added.

Hong Leong IB said it was “positive” on the land acquisition.

“We are positive on this acquisition as land cost makes up 16% of overall gross development value, meaning margins should be healthy.

“This is a very quick turnaround project, with Phase 1 to be launched in the second half of this year. We expect earnings contribution to commence in the first half of 2013. Phase 1 will comprise double-storey link homes indicatively priced from RM530,000.”

Hong Leong IB has retained its “buy” call on Mah Sing with a target price of RM2.44, which is a 30% discount to revised net asset value.

Meanwhile, analysts at Kenanga Research have maintained their “market perform” rating on the stock and lowered their target price to RM2 from RM2.18 previously.

They said that it was a sector-driven call due to the unexciting sector dynamics, coupled with Mah Sing's higher-than-average net gearing level among developers under their coverage.

By The Star

UEM Land Q1 earnings up 207% to RM54.17m

KUALA LUMPUR: UEM Land Bhd's earnings jumped 207% to RM54.17mil in the first quarter ended March 31, 2012 from RM17.61mil a year ago while its unbilled sales totalled RM1.85bil.

It said on Friday that revenue increased 61.8% to RM303.72mil from RM187.68mil. earnings per share were 1.25 sen compared with 0.44 sen.

"The group recorded higher revenue in the current quarter as compared to the preceding year corresponding quarter mainly due to contribution from the group's development from East Ledang, Nusa Bayu, Nusa Idaman, MK28 and Quintet as well as sale of inventories from Dutamas and Meridin," it said.

UEM Land said the higher profits were in line with the higher revenue.

On the outlook for the property market, it expected it to remain cautious in the short term given the prevailing lending environment.

"Ongoing projects have an unbilled sales of RM1.85bil as at March 31, 2012. The revenue and profits from these future billings will be recognized substantially over 2012 and 2013," it said.

UEM Land said the group was well positioned to launch several competitively priced residential and commercial projects in the Klang Valley, Cyberjaya and Nusajaya.

It pointed out these projects together with the other ongoing projects would underpin the group's performance in meeting its current year's revenue and profit targets.

By The Star

Properties boost Equine net profit

PETALING JAYA: Equine Capital Bhd posted a net profit of RM7.38mil in the fourth quarter ended March 31, 2012, a 226.99% increase compared with RM2.26mil a year earlier.

However, Equine’s pre-tax profit for quarter under review declined 60.94% to RM1.25mil from RM3.19mil previously.

The company achieved a 15.93% increase in revenue to RM47.06mil from RM40.59mil. Revenue for the quarter was derived mainly from its property development segment, it told Bursa Malaysia.

By The Star