Hovid Bhd 3Q net profit up 1.2% on year to RM5.15 mil

KUALA LUMPUR (May 30): Hovid Bhd net profit for the third financial quarter ended March 31, 2014 rose 1.2% to RM5.15 million from RM5.09 million in similar quarter a year ago. Revenue for the quarter rose to RM50.65 million versus RM45.93 million a year ago. The company attributed its rise in profit to increased revenue. For the full nine months, net profit fell 6% to RM13.39 million compared with RM14.25 million a year ago. Cumulative revenue for the nine months rose to RM135.49 million from RM131.94 million a year ago. The company said the reasons for its lowered nine months' profit were increases in operational costs and lower sales mix margins. The company issued a half a sen dividend per share. On prospects, the company expects its outlook to be satisfactory as it is actively securing new overseas markets and registering new products. It added that it would continue to enhance its competitive edge by placing emphasis on research and development to improve its production processes.

Hot Stocks - MNRB, Allianz Malaysia, L&G advance on positive quarterly results by THE EDGE

KUALA LUMPUR (May 29): MNRB, Allianz Malaysia, Allianz-PA and Land & General (L&G) were among the top gainers and actives in the morning session at Bursa Malaysia on Thursday following positive quarterly results announcements yesterday. At mid-day market break, MNRB gained 15 sen to trade at RM4.18 per share. Allianz rose 60 sen to at RM11 per share while its warrant added 56 sen to RM10.90 per share. L&G – the top six active – rose 2.5 sen to 57.5 sen with some 16 million shares traded. MNRB Holdings Bhd’s net profit jumped 63% year-on-year to RM73.7 million for its fourth quarter ended March 31, 2014, from RM45.3 million in the previous year. Revenue for the quarter rose to RM 588.0 million from RM581.0 million in the same quarter a year before. The higher revenue was a result of the increase in gorss premiums and contributions by the company’s reinsurance and takaful subsidiaries. The company attributed its higher net profits to higher underwriting surplus of the company’s reinsurance unit. Going forward, the group expects to achieve “satisfactory results” for the next financial year ending March 31, 2015. Allianz Malaysia Bhd reported net profit of RM86.2 million for its first quarter ended March 31, 2014, jumping 60% from RM53.7 million in the preceding year’s same quarter. Revenue for 1QFY14 rose 18% to RM1.02 billion from RM862.1 million in 1QFY13. The group sees a challenging outlook on the year, due to regulatory changes and consolidation in the industry, but said that it will maintain its momentum to maintain its market leadership. “The board believes that the group’s strategic initiatives will deliver satisfactory results and continues its long term sustainable growth,” said Allianz in its statement. Land & General Bhd’s net profit for its fourth financial quarter ended March 31, 2014, was positively flat at RM19.72 million from RM19.66 million in the same quarter a year ago Revenue for the quarter rose to RM120.74 million from RM83.15 million a year ago. Net profit for the full year more than doubled to RM131.6 million from RM57.2 million a year ago. Cumulative revenue rose to RM491.9 million from RM216.3 million a year ago. The company declared a 2 sen per share dividend.

CIMB Research downgrades Mudajaya to Hold, cuts target price to RM2.52 by CIMB

CIMB Research downgrades Mudajaya to Hold, cuts target price to RM2.52 KUALA LUMPUR (May 28): CIMB Research has downgraded Mudajaya Group Bhd to Hold (from Add) at RM2.54 with a lower target price of RM2.52 (from RM3.19) and said Mudajaya's annualised 1Q14 core net profit made up 59% of house full-year forecast and 61% of consensus. In a note May 27, the research house said the results were below expectations as 2H could be weak due to delays in its Indian IPP and depletion of order book. Analyst Sharizan Rosely said he was negatively surprised that Mudajaya was no longer keen on the Track 3A power plant civil works job. He said other power plant jobs were in the pipeline but the only possible win this year could come from the WCE. “We slash our FY14-16 EPS forecasts by 15-44% and cut our target price by 21%, still based on a 40% discount to RNAV. “Its longer-term prospects still look good, but we think that its medium-term outlook is unlikely to be exciting, thus weighing on its share price. “We downgrade our call from Add to Hold. Switch to IJM Corp,” said Sharizan.

MKH’s quarterly profit soars to RM50.7m by The EDGE

MKH’s quarterly profit soars to RM50.7m KUALA LUMPUR: Property cum plantation company MKH Bhd’s net profit jumped fourfold to RM50.7 million in its second quarter ended March 31 of financial year 2014 (2QFY14) from the RM12.7 million in the previous corresponding period. Revenue surged 37% to RM188.1 million from RM137.2 million, while earnings per share grew to 12.1 sen in 2QFY14 from 3.08 sen in 2QFY13. MKH’s stellar performance was attributed to a stronger contribution from both its property arm and oil palm plantation division, which are gaining steady growth momentum, according to executive chairman Tan Sri Alex Chen Kooi Chiew. For the six months ended March 31, MKH achieved a net profit of RM67.48 million, or 16.10 sen per share, up 44% from RM46.8 million, or 11.38 sen. Revenue came in higher at RM370.6 million against RM285 million previously. The group’s property division recorded a higher revenue of RM244.4 million for the six months ended March 31, with new sales totalling RM317 million, boosted by a favourable response to several of its launches. These projects include terraced link houses in Kajang East township and Hillpark@Shah Alam North, as well as its commercial project, MKH Avenue 1. In total, MKH’s unbilled sales stood at RM602 million in the period, underpinning its performance going forward. “We continue to enjoy a long-term profit track record for over 30 years now as our projects continue to be well received by home buyers whereby we are enjoying rapid sales in our new launches this year,” Chen said. With that, the group is on track to achieve RM800 million in new sales in 2014 alone, followed by future launches (over 50% will take place in the second half of this year) amounting to a gross development value (GDV) of RM1.4 billion. Its plantation arm, which achieved revenue growth of 75.2% to RM74.8 million in the first half of FY14, continues to grow steadily, driven by higher crude palm oil prices and increasing fresh fruit bunch production from its young oil palms. “We expect exponential [financial] growth by 2017 when all the trees reach their peak from seven to 15 years old,” Chen said, adding that the group remains bullish on its oil palm plantation division, which currently accounts for over 20% of its revenue and profit. On the other hand, the contribution from MKH’s 16,000ha of oil palm plantation in East Kalimantan (Indonesia) is said to be growing significantly, driven by the relativel y young age of the trees ranging from three to six years. Moving forward, Chen said both of MKH’s core divisions are expected to maintain growth as the group’s prime landbank within Kajang and Kuala Lumpur, with a GDV of RM6.2 billion, enables it to “innovate” more diversified developments. “We are actively looking out for land within and outside Malaysia to expand our property and plantation businesses,” he said. This article first appeared in The Edge Financial Daily, on May 28, 2014.

Ta Ann’s 1Q core earnings driven by plantation and timber segments by Public Invest

Ta Ann’s 1Q core earnings driven by plantation and timber segments Ta Ann Holdings Bhd (May 27, RM4.33) Maintain outperform with target price of RM5.53: Ta Ann’s first quarter ended March 31 of financial year 2014 (1QFY14) core earnings of RM29 million accounted for 25% of our and consensus’ forecasts, which came in within our estimates. The strong set of results was mainly underpinned by the recovery of crude palm oil (CPO) prices and double-digit growth for fresh fruit bunch (FFB) production. To our surprise, management announced a first interim single-tier dividend of 10 sen, payable on June 27. The dividend is also higher than the full-year dividend paid for the last two years. We reaffirm our “outperform” call with a slightly lower target price of RM5.53 after fine-tuning our numbers for FY15 and FY16 as we expect slower production growth next year. Revenue for 1QFY14 grew 2.3% quarter-on-quarter and 41% year-on-year (y-o-y). The stronger y-o-y sales were mainly led by an increase in the plantation segment (39%) and timber segment (43) driven by better timber prices and higher log and plywood sales volumes. Log exports and plywood sales increased 43% and 16% respectively. Meanwhile, average prices for logs jumped 20% y-o-y to US$251 (RM806) per cu m while average plywood prices were up 7% to US$530 per cu m. The better plantation sales were mainly due to an increase in CPO prices which jumped 14% to RM2,499 per tonne compared to RM2,200 per tonne while CPO production jumped nearly 16%. The average price was lower than the market average as the company had sold forward 50% of its CPO production in late 2013, at around RM2,400 to RM2,500 per tonne. Core earnings for 1QFY14 jumped to RM29 million, with the plantation and timber segments recording strong earnings of RM28 million and RM11 million respectively. The higher FFB cost of RM390 per tonne for the quarter was due to higher manuring expenses and management expects it to normalise towards the RM300 to RM320 per tonne levels in the coming quarters. Management is also expecting a 12% to 14% increase in FFB production this year, driven by the additional mature acreage of 2,400ha and young age profile of its plantations. Total mature planted area is expected to reach 33,000ha by year-end. — PublicInvestResearch, May 27

Malaysia’s palm oil exports seen by Oil World at four-year low by THE EDGE

Malaysia’s palm oil exports seen by Oil World at four-year low (May 28): Malaysia’s palm oil exports are forecast to be a four-year low in 2014 partly because of dry weather and also due to a shortage of labour, Oil World said. Exports will be 17.2 million metric tons, down 1 million tons from last year, the Hamburg-based researcher said in a report. Yields will decline to 4.26 tons a hectare (2.47 acres), the lowest since 2010, it said. Malaysia is the biggest producer of palm oil after Indonesia, according to the U.S. Department of Agriculture. “It is quite alarming that palm oil yields are set to decline for the third consecutive year,” Oil World said. “Weather conditions can only partly be blamed for this development. It is also indicated that there is an increasing problem with the growing share of old trees having surpassed the optimal age as a result of insufficient replanting.” Malaysia’s palm oil production will climb 0.9 percent to 19.4 million tons this year, according to the report. The first effect of reduced rain in January to April will probably show up in September-December, when crude palm oil production is seen falling below year-ago levels, Oil World said. Page 2 of 2 (May 28): Thailand, once prized in Southeast Asia for its relative economic stability, is in danger of inheriting the “Sick Man of Asia” tag as the latest coup threatens to send investors scurrying toward once-riskier neighbours such as the Philippines and Myanmar. Vietnam, Indonesia, Malaysia and the Philippines are forecast to grow more than 5 percent this year, while Thailand is on the verge of a recession after gross domestic product shrank in the first quarter. The imposition of martial law was “credit negative” for Thailand, Moody’s Investors Service said May 22. Two weeks earlier, Standard & Poor’s raised the sovereign grade of the Philippines, which earned the “Sick Man” moniker for decades of limited growth. With global companies and investors increasingly looking for options in Asia beyond China, Thailand’s latest upheaval contrasts with improved outlooks elsewhere. Pro-investment Joko Widodo is the frontrunner for Indonesia’s July presidential vote, the Philippines is forecast to report its ninth straight quarter of above-6-percent growth, and Vietnam is taking steps to loosen its grip on state enterprises and lure investors. “Countries like Vietnam and the Philippines are snapping at its heels and may overtake Thailand if the fundamental political challenges are not resolved,” said Frederic Neumann, co-head of Asian research at HSBC Holdings Plc in Hong Kong. “The constant change in leadership and policy left adrift are taking a cumulative toll on Thailand’s economy and damping its long-term prospects.” Underweight Stance Credit Suisse Group AG this week forecast Thailand stocks will underperform for one to three years, saying “last week’s coup leaves investors little reason to stay.” Goldman Sachs Group Inc. on May 25 reiterated its underweight stance on Thai equities, and Morgan Stanley said it sees no growth this year amid “a deeper slowdown and a subdued recovery.” Even the nation’s biggest state pension fund is looking for better returns elsewhere. The Government Pension Fund is buying shares in India, Indonesia and the Philippines, which have stable politics and stronger economies, Sombat Narawutthichai, the fund’s secretary general, said this week. India, where the strongest electoral mandate in 30 years has raised expectations for faster economic growth, has the potential to expand about 10 percent annually for the next 20 years, Jim O’Neill, former chairman of Goldman Sachs Asset Management, said on May 16. The Philippines is forecast to say tomorrow that first- quarter GDP grew 6.4 percent from a year earlier, while Malaysia this month reported a better-than-estimated 6.2 percent expansion. In contrast, Thailand’s GDP shrank 0.6 percent in the three months through March. Stocks, Baht The benchmark SET index of stocks has gained about 7 percent this year, lagging the 16 percent gain for the Jakarta index and the 15 percent increase for the Philippines. The baht is among the worst performers over the past six months of 11 widely traded Asian currencies tracked by Bloomberg. Thailand’s military seized power last week to end six months of political stalemate between Yingluck Shinawatra’s government and its opponents. Before the coup, anti-government protesters had been demanding an unelected council run the country to wipe out the influence of former prime ministers Thaksin Shinawatra and his sister Yingluck, whom they accuse of corruption and using the appeal of economically damaging populist policies to win the last five elections. Buying Chance? Thailand has overcome coups, natural disasters and downturns in the past. During the last military intervention in 2006, annual economic growth accelerated to 5.1 percent from 4.6 percent as exports strengthened. Military coups are not new in Thailand and historically, “when there’s blood on the streets” you’re supposed to buy, Jim Rogers, chairman of Rogers Holdings, said last week. Templeton Emerging Markets Group views “the coup as likely overall positive as it creates a more stable environment than before,” Mark Mobius, executive chairman, said May 22. The economy is in worse shape than when the 2006 coup took place, Christian de Guzman, vice president at Moody’s in Singapore, said in a May 23 interview. Moody’s is concerned about “the further effect the political situation will have on the economic and fiscal metrics that we look at,” he said. Rival investment destinations are also in better shape than eight years ago: Japanese investors are increasing allocations in Indonesia and helping develop Myanmar’s power industry, while the Philippines plans to ease restrictions on foreign ownership to lure more capital. Foreign direct investment into Thailand was just ahead of Malaysia in the region in 2012, with flows to Vietnam and the Philippines also rising, World Bank data showed. In AT Kearney’s global cities index for 2014, Bangkok had the steepest fall from the 2008 ranking, sliding 15 levels while peers including Mumbai, Jakarta and Ho Chi Minh City climbed. Staying Away Sony Corp., Panasonic Corp., and Hitachi Ltd. are among companies advising workers against traveling to Thailand, while foreigners arriving in the country dropped 4.9 percent in the first four months of 2014 from a year earlier. Thailand’s state planning agency this month forecast total investment may fall 1.3 percent this year from an earlier prediction of a 3.1 percent increase. “This coup has come at a difficult time,” said Edward Teather, a Singapore-based senior economist at UBS AG who covers Southeast Asia. “Thailand has been losing ground as an investment destination for a while now. If that doesn’t change, Thailand will miss growth opportunities.”

2013 Stocks with ROE more then 20%

	Code	Name	ROE%	ROTA	ROR%	Close Price
1	6947	DIGI	258.08	45.46	25.34	5.400	31/12/2013
2	4162	BAT	161.99	60.06	18.23	62.440	31/12/2013
3	7170	LFECORP	120.87	11.60	18.52	0.155	31/7/2013
4	7191	ADVENTA	113.06	83.75	300.94	1.110	31/10/2013
5	6399	ASTRO	81.67	6.41	9.80	3.500	31/1/2013
6	3026	DLADY	73.55	33.20	14.07	47.260	31/12/2013
7	4707	NESTLE	68.80	26.89	11.73	68.100	31/12/2013
8	1562	BJTOTO	68.59	25.35	10.78	3.860	30/4/2013
9	2836	CARLSBG	67.19	30.81	11.83	12.180	31/12/2013
10	81	IDEAL	61.00	47.51	48.18	0.300	31/12/2013
11	3255	GAB	59.53	29.45	12.98	13.560	30/6/2013
12	5182	GWPLAST	50.15	49.97	0.00	0.630	31/12/2013
13	7076	CBIP	49.49	35.91	45.93	4.510	31/12/2012
14	6351	AMWAY	46.53	33.14	13.07	11.980	31/12/2013
15	5216	DSONIC	46.03	22.84	31.41	3.470	31/12/2013
16	5789	LBS	45.15	19.54	73.60	1.740	31/12/2013
17	5204	PRESBHD	43.39	35.81	35.18	1.950	31/12/2013
18	5908	DKSH	38.92	12.63	3.44	7.930	31/12/2013
19	5102	GCB	34.95	10.41	8.19	1.410	31/12/2012
20	5068	LUSTER	34.42	18.78	30.72	0.105	31/12/2012
21	2615	JTINTER	34.01	24.51	9.55	8.170	31/12/2013
22	5229	CAP	33.41	28.14	18.71	0.310	31/12/2012
23	5049	CVIEW	33.15	20.91	28.50	3.000	30/11/2013
24	5031	TIMECOM	32.01	27.27	116.98	4.450	31/12/2013
25	5622	TRIPLC	31.45	6.65	20.25	1.280	31/5/2013
26	5139	AEONCR	31.25	5.51	28.71	14.800	20/2/2013
27	7004	MULTICO	30.97	23.97	26.45	1.490	31/7/2013
28	5168	HARTA	30.55	24.82	22.61	5.930	31/3/2013
29	168	BOILERM	30.16	13.41	14.31	3.010	31/3/2013
30	6645	LITRAK	29.71	5.71	35.42	3.890	31/3/2013
31	7231	WELLCAL	29.67	25.17	18.77	1.480	30/9/2013
32	6012	MAXIS	29.42	10.19	19.43	6.900	31/12/2013
33	165	XOX	28.36	9.56	11.26	0.110	30/6/2013
34	5211	SUNWAY	27.97	13.43	31.57	3.200	31/12/2013
35	5090	MEDIAC	27.53	11.89	11.93	0.965	31/3/2013
36	5236	MATRIX	27.51	16.87	26.43	4.100	31/12/2013
37	1171	MBSB	27.33	1.70	23.56	2.160	31/12/2013
38	5246	WPRTS	27.14	12.18	25.42	2.660	31/12/2013
39	5169	HOHUP	27.04	6.41	15.07	1.400	31/12/2013
40	166	INARI	26.60	11.29	17.42	2.720	30/6/2013
41	32	REDTONE	26.15	12.37	17.66	0.730	31/5/2013
42	7250	UZMA	25.74	13.69	8.15	5.820	31/12/2013
43	5219	PESTECH	25.27	12.81	12.14	4.820	31/12/2012
44	138	MYEG	24.96	19.14	45.56	2.600	30/6/2013
45	58	JOBST	24.63	19.48	717.47	2.430	31/12/2013
46	5024	HUPSENG	24.43	17.91	14.62	1.140	31/12/2013
47	6139	TAKAFUL	24.30	2.01	8.11	12.880	31/12/2013
48	5131	ZHULIAN	24.00	21.71	29.02	2.720	30/11/2013
49	7251	BARAKAH	23.78	8.74	13.76	1.630	30/9/2013
50	5018	HUNZPTY	23.77	14.56	148.10	1.950	30/6/2013
51	8435	CEPCO	23.09	12.72	12.03	1.610	31/8/2013
52	7052	PADINI	22.94	16.67	10.81	2.020	30/6/2013
53	9792	SEG	22.61	15.63	21.18	1.490	31/12/2012
54	8923	JIANKUN	22.59	14.13	73.09	0.380	31/12/2013
55	8	WILLOW	22.55	18.52	18.87	0.810	31/12/2013
56	5141	DAYANG	22.40	15.11	27.02	3.560	31/12/2013
57	113	MMSV	22.24	18.77	18.82	0.210	31/12/2013
58	7073	SEACERA	22.23	14.65	41.05	0.850	31/12/2012
59	6769	KELADI	21.74	19.92	56.93	0.330	31/1/2013
60	5213	SNTORIA	21.39	11.56	25.59	0.900	30/9/2013
61	1818	BURSA	21.34	9.94	39.35	7.680	31/12/2013
62	5062	HUAYANG	21.07	11.12	17.24	1.900	31/3/2013
63	99	SCICOM	21.06	19.13	11.10	1.080	30/6/2013
64	5191	TAMBUN	20.96	13.08	17.27	1.950	31/12/2013
65	78	GDEX	20.93	12.71	10.07	1.720	30/6/2013
66	8966	PRLEXUS	20.85	13.44	6.56	1.540	31/7/2013
67	5132	DELEUM	20.49	9.90	10.23	6.000	31/12/2013
68	5189	MAXWELL	20.48	17.09	18.84	0.260	31/12/2012
69	7100	UCHITEC	20.47	17.87	41.58	1.430	31/12/2013
70	4251	IBHD	20.28	13.53	28.90	3.290	31/12/2013
71	6033	PETGAS	20.25	15.72	53.41	24.340	31/12/2013
72	126	MICROLN	20.05	12.34	17.31	0.750	31/12/2012

Bina Puri boosting property development

KUALA LUMPUR: Bina Puri Holdings Bhd’s reliance on its construction business for most of its existence has made its margins razor thin. But this could change in the coming years. Group executive director Matthew Tee Kai Woon said Bina Puri is trying to change its fortunes as its property development division now has projects that will keep it busy for the next five to six years and a future gross development value (GDV) of nearly RM3 billion.

“We have development projects in Kota Baru, Kuching, the Klang Valley; all over the country, virtually. So we will be quite busy for at least the next five to six years. We are also in negotiations to buy a piece of land big enough to build a township in northern Pahang,” Tee told The Edge Financial Daily.

He said Bina Puri plans to beef up the property development segment’s share of group revenue to 40%.

However, this could be a tall order for the time being. Based on Bina Puri’s audited financial statement for the financial year ended Dec 31, 2013 (FY13), the property development segment’s sales were RM74.35 million, a mere 7.03% of group revenue of RM1.05 billion.

Over 81% of Bina Puri’s revenue of RM858.45 million came from its construction division. Tee said that in the interest of winning project bids, this would result in slashing profitability. Bina Puri also has other businesses — quarry and ready-mix concrete, polyol and power supply segments. The latter contributed a steady income to the group.

Nonetheless, with RM2.84 billion of expected GDV in Bina Puri’s property development pipeline, Tee said he hopes things will look upward for Bina Puri’s bottom line.

Looking at the list of its ongoing property projects, Bina Puri has some gems. The Opus serviced apartment, for example, is a stone’s throw from the upcoming Menara Warisan Merdeka owned by Permodalan Nasional Bhd. Tee said he hopes the excitement around the skyscraper can benefit The Opus.

Furthermore, Bina Puri tied up for a joint venture with Syarikat Prasarana Negara Bhd for a mixed-development project comprising single office, virtual office, serviced suites and restaurants on an abandoned site in Brickfields. The project has an estimated GDV of RM1.28 billion.

“The really thin margins [due to the construction division] were one of our weaknesses. Next year, Bina Puri is celebrating its 40th year. But most of our assets are human capital, so now it’s our conscious effort to have recurring income and do asset building,” said Tee.

Currently, Tee said, Bina Puri is banking on its maiden shopping mall, The Main Place Mall in Subang Jaya, to generate steady income for the group. “This was an abandoned project dating back in 1998. The first developer failed to complete it, then the first white knight couldn’t make it as well and in we came in 2010,” Tee said.

Bina Puri purchased the infrastructure for about RM28 million, while it received financing from UOB bank to finance RM190 million for the construction.

Currently, the mall has an occupancy rate of over 80% of the 233,408 sq ft of the net lettable area (NLA), according to Tee, with an average rental of RM6 per sq ft. Back-of-the-envelope calculations show that Bina Puri stands to receive RM13.44 million from the rental. This does not include income from The Main Place’s car park. The deal with its tenants, he said, is either to pay the rental per sq ft or a percentage of the tenants’ sales, whichever is higher. Thus, Bina Puri could stand to gain more.

MItrajaya sees exciting growth ahead.

KUALA LUMPUR: Construction firm Mitrajaya Holdings Bhd’s order book is at an all-time high of RM1.2 billion. With that the company is positive on churning out strong earnings growth at least in the next two years.

In an interview, managing director Tan Eng Piow (pic) told The Edge Financial Daily that Mitrajaya was targeting to achieve revenue of RM500 million to RM600 million for current financial year ending Dec 31 (FY14), and at least RM600 million for FY15.

A revenue target of RM500 million would mean revenue growth of 48% compared with its revenue of RM338 million in FY13 and RM250.5 million in FY12. Using the net profit margin of 9% for FY13 as the yardstick, Mitrajaya is expected to achieve a net profit of RM43 million, or 11 sen per share.

Mitrajaya’s main line of business is in the construction of infrastructure projects and building works. It aims to secure an additional RM300 million worth of jobs to boost its order book to RM1.5 billion for FY14.

“We have seven more months [to the end of FY14]. We are quite confident in securing an additional RM300 million worth of jobs,” said Tan, adding that its construction order book had averaged about RM600 million in the past.

The company derives some 64% of its revenue from its construction division.

The company recently inked a RM277.4 million deal with UEM Sunrise Bhd to build a condominium block at Symphony Hill in Cyberjaya. The largest outstanding contract in its order book is an RM428 million job involving the Malaysian Anti-Corruption Commission building in Putrajaya.

“We are tendering for some of the infrastructure and building jobs, mainly from government-linked companies. We also have two jobs with the East Coast Economic Region,” said Tan, adding that the company is currently tendering for RM1.75 billion worth of construction and infrastructure jobs.

He said that the average size of jobs handled by Mitrajaya in the past was between RM50 million and RM100 million, but the value has now exceeded RM100 million, reflecting the company’s growth.

Other jobs in its tender book include Petroliam Nasional Bhd’s refinery and petrochemical integrated development project in Johor and building works at Bandar Setia Alam in Putrajaya and Ikano Power Centre at Jalan Cochrane, Kuala Lumpur.

Apart from the record high order book, the company’s property development segment could be another growth engine.

“In the next couple of years, the potential to realise all these landbank in terms of value would give us a substantial cash flow. In the 2015 to 2016 period, our group turnover should increase quite [significantly],” said Tan.

Mitrajaya is preparing to unlock the value of its over 200 acres (81ha) of landbank in Banting, Selangor and Melaka.

“We have no plans in terms of acquisition of new land, only those in developing what we already have to realise its profit and potential,” said Tan.

The recent spike in Mitrajaya’s share price was partly driven by its undervalued landbank, which has not been revalued for many years. Tan said the value of the company’s 257.65 acres of landbank is estimated to have almost quadrupled to RM623.17 million from its book value of RM160.55 million as at end-2013.

The estimated landbank value is nearly double that of the company’s market capitalisation of RM337 million based on its share price of 85.5 sen.

Its share price had hiked 85.7% to an all-time peak of 91 sen on May 19, from 49 sen on Feb 28. The stock then retreated to 85.5 sen last Friday, down 6.04% from its peak.

The company has plans to develop high-end bungalow units in Pulau Melaka spanning 17.84 acres of reclaimed land opposite the Mahkota Parade shopping mall.

“We are looking at a design concept that is similar to a mini Sentosa. We will look to market it to foreigners, especially Singaporeans,” he said, adding that the project will be developed in various stages as it comprises 92 bungalows.

“We have yet to develop the land. We plan to get all the necessary approvals in place by early-2016 and kick off the development in 2016,” said Tan.

Mitrajaya also owns 180 acres of freehold land in Banting that is targeted for a mixed development by early 2016.  Tan said the Banting land has appreciated to RM12 to RM15 psf from RM3.71 psf.

Its plan over the next three years also includes the development of three blocks of luxury condominiums in Wangsa Maju with a gross development value (GDV) of RM650 million and a mixed development in Puchong Prima with a GDV exceeding RM1 billion.

Besides its operations in Malaysia, it also has a self-sufficient property development business in South Africa which has an undeveloped landbank of 152 acres on which it plans to construct high-density residential units, as well as a business park, shopping mall, office building and hotel.

“South Africa has been profitable to us every year. We believe within the next one to two years, we should have a sizeable amount of cash with us to make additional acquisitions in South Africa without too much borrowings” he said.