MITRA

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For a small cap listed corp like Mitrajaya (RM357mil), secured RM1.10bil is a very impressive result and this amount expected to take 30 months to complete, RM90mil to RM120mil revenue for each quarter. This has been proved for the 31 Mar 2014 by getting RM104mil.

Today MD, Tan Eng Piow said that they will secure another RM400mil more at least, since they are bidding RM3.0bil projects.

Currently it's biggest project is MACC building in Putrajaya (RM428mil), and Condo project for UEM Sunrise Bhd, Cyberjaya (RM277mil). So they were targeting RM500mil to RM600mil for the revenue of 2014.

On the other hand, Mitra also has impressive result on property division: Luxury Condo in Wangsa Maju (GDV: RM650mil, soft launch at July, official launch in Sept or Oct).

Puchong, Selangor 15acres of land was on planning stage, carry GDV: RM1.5bil. This development features a 5-stories mall, 3-blocks of apartment, and one block of boutique hotel.


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We did a rough estimation about taking 50% of the targeted revenue by construction division only: RM250mil. Construction is a very competitive business and we take count only 12% for the profit margin: RM30mil.

Since the condos in Wangsa Maju only completed the 1st phase, I dumbly assume that is a quarter of the whole project, so 70% of it would be RM113mil reveune. Property should contribute higher profit margin but we assume only 18% about RM20mil.

Total estimate profit could go as high as RM50mil. For a small cap MITRA, this is a very good sign, at least for next 30 months. But under a good management leader of Mr. Tan I can say Mitra will go better and better until it reaches a bottleneck. And, that's depend on how management works with Mitra.

Update 19 June '14: Mitrajaya is on track to achieve its RM1.5bn order book for FY14. Outstanding order book curently stood at RM1.1bn. This is not an issue as the group is bidding for RM3bn worth of jobs. Key projects in tender include RM600m worth of jobs in Rapid and RM620m building works in Nusajaya worth RM620m.