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BUTTERWORTH: PLB Engineering Bhd expects to be back in the black in the current financial year ending Aug 31, 2010 as it focuses more on property development, said group executive chairman Datuk Ong Choo.
He said the company would be launching several new property deprojects with a total gross development value (GDV) of RM400 million over the next four years in Penang.
"We will focus more on property development instead of the construction sector in the years to come. We are targetting to reduce our involvement in the construction sector from 50% to 20% from this year.
"The returns from the construction sector has not been encouraging as it has become very competitive," he said.
PLB on Monday, July 26 announced a net profit of RM2.32 million for its third quarter ended May 31, 2010 versus RM555,000 a year earlier, while revenue fell 27% to RM19.95 million from RM27.42 million. Basic earnings per share (EPS) rose to 2.82 sen from 0.65 sen. No interim dividend was declared.
For the nine months to May 31, net profit more than doubled to RM2.43 million from RM1 million a year earlier, while revenue fell 22% to RM68.66 million from RM87.48 million. EPS rose to 2.95 sen from 1.17 sen, while net assets per share increased to RM1.17 from RM1.15.
PLB slipped into the red in FY09, with a net loss of RM6.06 million versus a net profit of RM3.3 million in the previous year.
Ong said the group expected "satisfactory" returns from its development projects due to low initial capital outlay for its land bank, which totalled 200 acres in Penang.
Ong was speaking to The Edge Financial Daily after the company's EGM here on Monday, where shareholders approved its proposed acquisition of a 49.08-acre plot of land in Balik Pulau for RM38 million.
PLB will soon undertake a four-year development of that land for 1,100 houses, for a total GDV of RM250 million.
It will also launch another RM60 million GDV mixed project on a 8.2-acre site in Batu Maung in September and a mixed development on 20 acres in Simpang Ampat on the mainland with a GDV of RM50 million.
He said the company would be launching several new property deprojects with a total gross development value (GDV) of RM400 million over the next four years in Penang.
"We will focus more on property development instead of the construction sector in the years to come. We are targetting to reduce our involvement in the construction sector from 50% to 20% from this year.
"The returns from the construction sector has not been encouraging as it has become very competitive," he said.
PLB on Monday, July 26 announced a net profit of RM2.32 million for its third quarter ended May 31, 2010 versus RM555,000 a year earlier, while revenue fell 27% to RM19.95 million from RM27.42 million. Basic earnings per share (EPS) rose to 2.82 sen from 0.65 sen. No interim dividend was declared.
For the nine months to May 31, net profit more than doubled to RM2.43 million from RM1 million a year earlier, while revenue fell 22% to RM68.66 million from RM87.48 million. EPS rose to 2.95 sen from 1.17 sen, while net assets per share increased to RM1.17 from RM1.15.
PLB slipped into the red in FY09, with a net loss of RM6.06 million versus a net profit of RM3.3 million in the previous year.
Ong said the group expected "satisfactory" returns from its development projects due to low initial capital outlay for its land bank, which totalled 200 acres in Penang.
Ong was speaking to The Edge Financial Daily after the company's EGM here on Monday, where shareholders approved its proposed acquisition of a 49.08-acre plot of land in Balik Pulau for RM38 million.
PLB will soon undertake a four-year development of that land for 1,100 houses, for a total GDV of RM250 million.
It will also launch another RM60 million GDV mixed project on a 8.2-acre site in Batu Maung in September and a mixed development on 20 acres in Simpang Ampat on the mainland with a GDV of RM50 million.
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