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Wednesday, June 24, 2015

Mitrajaya aims to double earnings

SUBANG JAYA: Mitrajaya Holdings Bhd is looking to double its earnings on sustained activities from its construction, property and investment segments.
To help achieve its target, the company aims to secure RM1bil in construction projects this year, despite analysts’ conservative estimate of only RM500mil.
It is also bidding for more property projects from the Government under the Perumahan Penjawat Awam 1Malaysia (PPA1M) scheme.
Mitrajaya will also expand its activities in South Africa in hopes of generating more recurring income.
“What the company is looking to achieve this financial year is to double its turnover. If we do, we will cross the RM1bil mark. We also hope to double in net profit,” said managing director Tan Eng Piow.
He expects contribution from the construction business to remain at 70% this year, supported by its RM1.75bil outstanding order book.
Although there are fewer new projects coming into the market, Tan said that based on the jobs the company had in hand, “there is no slowdown”.
Mitrajaya has already secured a RM230mil construction project for three blocks of public apartments in Putrajaya under PPA1M.
“We are always ambitious and we set higher targets for us to achieve it. Hopefully in the next six months we can meet close to this RM1bil mark. It could possibly be two to three projects,” Tan said.
The company has RM1.6bil in its tender book, of which it hopes to secure at least half the amount. “We are also preparing to submit another RM500mil in tenders,” he said.
On the property segment, Mitrajaya has close to RM1bil in ongoing and partially completed projects.
For its Wangsa 9 Residency project, Tan hopes to achieve a take-up rate of 70% by year-end for the second phase launched in November 2014. “Although the market is slow for property but Wangsa 9 is doing alright due to its location,” he said.
The company hopes to launch its affordable homes development at Puchong Prima in the third quarter of this year.
Tan said the project, which comprises 408 apartments with 900 sq ft in size, is waiting for final approval. He added that the price for the units had been capped at RM180,000.
There are also plans for a mixed development in the same area. The 15-acre project comprises retail, residential, hotel and office units.
Tan hopes to start construction for the project by early next year.
Despite the subdued property market, he is confident about how the project will perform. “There is big demand, especially due to its proximity to station 11 of the LRT extension. This is the way forward. People are looking at properties close to infrastructure,” he said.
On South Africa, where Mitrajaya owns the Blue Valley Golf & Country Estate, Tan said the company has another RM150mil to dispose of, and it would take up to three years for the major portion of the land to be sold.
It is also looking to acquire additional land there as its investment has been “profitable since day one”.

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