News by Kenanga Research

The unexpected results came amid contribution from better priced properties such as commercial properties.

Scientex Bhd announced that its wholly-owned subsidiary Scientex Quatari Sdn Bhd has entered into a sale and purchase agreement with Dahlia Utama Sdn Bhd, a wholly-owned subsidiary of Lee Rubber Co (Pte) Ltd of Singapore, to acquire two parcels of land measuring 49ha for RM123.64 million, or RM23.42 per sq ft in Kulai, Johor.

Mitrajaya’s outstanding order book stands at RM1.68 billion, providing earnings visibility for another around 1.5 to 2 years.

The group’s 9MFY16 sales stood at RM707 million (fell 40% year-on-year [y-o-y]) met expectations at 71% and 78% of management’s and our target of RM1 billion and RM900 million respectively...

Property sales of RM864 million were on track to meet our and management’s target of RM1 billion and RM1.1 billion respectively.

The land is located within the Butterworth-Sungai Petani Growth Corridor with access to the North-South Espressway via the Bertam interchange, and is 18km away from Butterworth and 32km from the Penang Bridge.

Apart from its construction business, Pesona is striving to build up a recurring income stream that would help mitigate the cyclical risks in the construction sector.

Kerjaya Prospek Group Bhd, whose main business lies in the construction of high-rise residentials, is unfazed by the current slowdown in the industry. Instead, it has been winning more jobs than in previous years as compared to the property boom cycle.

The Bukit Bintang City Centre (BBCC) retail space will be acquired by the BBCC Retail Portfolio joint venture (JV, which is 50%-owned by Mitsui Fudosan [Asia] Pte Ltd) for RM505.8 million. This is expected and will provide a relief to the group’s balance sheet while impact to its FD sum-of-parts is minimal.

The group recently rolled out a global launch of four new projects (Eco Ardence, Eco Grandeur, Eco Bloom and Eco Business Park II) consisting of 1,524 units with a gross development value of slightly more than RM1 billion, and an average indicative take-up rate of 81%.