MRCB eyes RM910m sales in 2015

-A +A

KUALA LUMPUR (May 11): Malaysian Resources Corp Bhd (MRCB) aims to secure RM910 million in sales this year, from the launches it has in the pipeline worth up to RM1.3 billion in gross development value (GDV).

For 2015, the group plans to launch The Grid @ Kia Peng which has a GDV of RM400 million, followed by the Semarak City project here (RM400 million GDV), Phase 2 of 9 Seputeh along Old Klang Road (RM200 million GDV) and 3 Residences @ Kajang Utama (RM300 million).

"We are targeting to secure sales of about 70% to 80% of the total launches in 2015," said MRCB chief financial officer Ann Wan Tee told a press conference after the group's annual general meeting (AGM) today.

For its construction division, MRCB (fundamental: 0.6; valuation: 0.8) said its orderbook currently stands at RM1.2 billion, while its tenderbook is valued at around RM2 billion.

Ann said the group's tenderbook mostly comprises bids for infrastructure projects, as it aims to further grow its construction business.

"Though we say our focus has always been property, there is also the construction side of MRCB.

"We are trying to grow the construction business as well. We have left behind that segment a bit, as we were too focused on (developing) KL Sentral," said Ann.

Its construction segment currently contributes 45% of the group's revenue, while the property development business contributes the remaining 55%.

Ann said the property development segment will be the main driver for MRCB's performance this year, as the construction segment slowly grows its market share.

As at 4.03pm, MRCB shares were traded up 0.75% at RM1.34, with 990,700 shares having changed hands.

(Notes: 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.)