KUALA LUMPUR (March 4): Property developer Malton Bhd aims to more than double its current construction order book of approximately RM700 million, as it targets RM1.5 billion worth of contracts in 2015.
Ng Chee Kiat, a director of Malton (fundamental:1.10 ; valuation:1.80 ), said that the Damansara Town Centre project would account for approximately RM1 billion out of the total RM1.5 billion contracts targeted to be secured.
"For the Damansara Town Centre project, we have to demolish the buildings and reconstruct a new development. So, we're hoping to get the construction contracts for the project," said Ng after the company's extraordinary general meeting (EGM) today.
At the EGM today, Malton's shareholders had unanimously approved its resolution to continue to undertake related party transactions.
With the approval of its shareholders, the company is able to undertake construction projects from related parties, mainly those companies linked to Malton chairman, Tan Sri Desmond Lim Siew Choon, which includes the Damansara Town Centre project.
Besides the Damansara project, the company has not identified other construction projects but Ng said Malton is in "advanced discussions".
Looking ahead, the company's construction division will be balancing between internal projects and external projects.
"We are looking at a ratio of 50:50 between in-house projects and external projects, over the next two to three years," Ng said.
At 11.30am, Malton fell 0.5 sen or 0.6% to 83.5 sen, bringing its market capitalisation to RM376.7 million.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)