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Sunway Construction likely to reap from mega projects

Extract from BorneoPost (25/8/2015)

KUCHING: Sunway Construction Group Bhd (Sunway Construction) could become a strong contender for mega projects in the Klang Valley.

The research arm of TA Securities Holdings Bhd (TA Research) in a report yesterday said the construction company could benefit from upcoming projects such as Light Rail Transit (LRT) Line 3, Klang Valley Mass Rapid Transit (MRT) Line 2 and Bus Rapid Transit (BRT).

In the meantime, the research firm noted Sunway Construction has an outstanding order book of about RM2.7 billion which translated into 1.4 times financial year 2014 (FY14) revenue.

It observed the outstanding order book amount could support the company’s earnings for the next one to two years.


Housing market “severely unaffordable”, Khazanah Research says

Extract from The Star (24/8/2015)

KUALA LUMPUR: Malaysia’s housing market is viewed as “severely unaffordable” with a median house price is 4.4 times median annual household income, Khazanah Research Institute (KRI) said.

An “affordable market” is one where the median house price is three times median annual household income.

KRI managing director Datuk Charon Mokhzani said: “It is generally perceived that high housing prices are a direct result of high land and construction costs but this is not the case. 

“It is because developers are willing to pay for increased land prices as the market price for housing increases, that ultimately causes housing prices to increase.” 


I-Bhd's Q2 net profit at RM8.5mil

Extract from The Star (25/8/2015)

PETALING JAYA: I-Bhd’s net profit for its second quarter ended June 30 dropped 56% to RM8.52mil from RM19.41mil in the previous corresponding period, while revenue fell to RM52.73mil from RM70.65mil a year earlier.

In a filing with Bursa Malaysia, the master developer of i-City said the drop in earnings was due to the lower contribution from the property development segment. “Although there is more revenue recognition due to more projects being developed this year, the profits are lower, as the property products that were developed in 2014 had better margins than the current property products.”

For the six-month period, net profit dropped to RM18.75mil from RM25.51mil in the previous corresponding period, while revenue increased to RM128.07mil from RM115.56mil a year ago.

The company said the group had sold 50% more property than in the first-half of 2014, resulting in unbilled sales growing to RM580mil as at the end of June compared with unbilled sales of RM418mil as of end-June 2014. “The group expects this unbilled sales to translate into higher revenue for the second-half of the year.”


PHB acquires land from Terengganu for RM106 million

Extract from Bernama (24/8/2015)

KUALA LUMPUR: Pelaburan Hartanah Bhd (PHB) has acquired 4.4 hectares, worth RM106 million, from the Terengganu state government and its agency, Lembaga Tabung Amanah Warisan Negeri Terengganu, for a mixed integrated commercial development project.

The project, with gross development value of about RM700 million, is located in Kampung Ladang Tanjung Bandar, Kuala Terengganu.

PHB is a real estate holding company and a wholly-owned unit of Yayasan Amanah Hartanah Bumiputera.

PHB's Managing Director/Chief Executive Officer, Datuk Kamalul Arifin Othman, said its participation in the development of Terengganu was a strategy to strengthen its presence in commercial hubs across Malaysia.


Call to reduce inefficiencies in housing supply

Extract from Bernama (24/8/2015)

KUALA LUMPUR: There is a need to reduce inefficiencies in the current local housing supply and for intervention to make the supply side more elastic to be responsive to the needs of all sections of the population.

Managing Director of Khazanah Research Institute (KRI), Datuk Charon Mokhzani, said middle-income households were neither eligible for social housing nor able to afford private sector-supplied houses.

"The policy should therefore be geared to improving the elasticity of housing supply and make it more responsive to the needs of all sections of the population," he said at the launch of the institute's publication, 'Making Housing Affordable' here today.

Khazanah Nasional Bhd Deputy Chairman, Tan Sri Nor Mohamed Yakcop, launched the publication.


KidZania KL expects to record 500,000 visitors this year with new partners

Extract from Bernama (24/8/2015)

PETALING JAYA: Themed Attractions Resorts and Hotels Sdn Bhd expects to record 500,000 visitors to its educational and entertainment theme park, Kidzania Kuala Lumpur (Kidzania KL) this year.

Kidzania KL and Singapore governor Susanah Abd Rani said since the launch of the indoor family edutainment centre in 2012, it had received over two million visitors.

"We believe the target is achievable with the launch of four new establishments this month and the figure is based on the park's capacity at any one time," she told reporters at a press conference here Monday.

The latest KidZania KL partners are the Brother sewing and embroidery centre, F&N climbing building, Telekom Malaysia telecommunication centre and Leebook's young scientist magazine.


Khazanah Research Institute says housing market "seriously unaffordable"

Extract from The Sun Daily (24/8/2015)

KUALA LUMPUR: The Malaysian housing market is deemed "seriously unaffordable", with the median house price at 4.4 times median annual household income, Khazanah Research Institute's (KRI) latest report found.

The Institute today revealed findings of its report entitled "Making Housing Affordable".

An affordable market is one where the median house price is 3 times median household income.

The report also found that rising house prices is seen as a determining factor for the rise in land prices, which is in contrast to what has been perceived by the market.


JCorp to develop township project in Kota Tinggi next year

Extract from The Star (24/8/2015)

JOHOR BARU: State investment firm Johor Corp (JCorp) is finalising details to develop a multi-billion ringgit township and an industrial park in Kota Tinggi district, northwest of Johor Baru, next year.

JCorp president and chief executive officer Datuk Kamaruzzaman Abu Kassim said the two projects would cater for the Pengerang Integrated Petroleum Complex (PIPC).

“We see there is a need for a large scale housing scheme and an industrial park with the support services for the oil and gas (O&G) related activities in the PIPC,’’ he told StarBiz.

Kamaruzzaman said JCorp’s units Kulim (M) Bhd and Johor Land Bhd would undertake the two projects with a gross development value of RM3bil.


Sunway Construction kept at Buy by BIMB Research

Extract from The Star (24/8/2015)

KUALA LUMPUR: BIMB Securities Research is retaining its Buy call for Sunway Construction Group with a target price of RM1.43, which is 31.2% above its last traded price of RM1.09.

It said on Monday SunCon was trading at discount of 9.2% of its IPO price of RM1.20, translating to 10.6 times forward PE. 

“As such, we recommend investor to re-consider this well-established company and have a commendable dividend policy,” it said.

BIMB Research said SunCon’s 1HFY15 revenue and normalise earnings of RM996.3mil and RM76.0mil respectively were within its expectation and accounted for 49.2% and 57.1% of its full-year earnings projection. 


SP Setia launches more than 2,000 affordable housing units in Setia Alam

Extract from Bernama (22/8/2015)

SHAH ALAM: SP Setia Bhd, a leading property developer in Malaysia, today launched an affordable housing project, "Rumah Selangorku" at Setia Alam here, to help the lower and middle income earners own a house at a reasonable price.

SP Setia Bhd Chairman Tun Zaki Azmi said the project involves the building of the Desa Kiara and De Palma apartments with 737 and 730 units respectively.

Both have a built-up area of 800 sq ft and are priced at RM170,000.

"The project also involves 723 units at the De Bayu apartment with a built-up area of 900 sq ft and priced at RM200,000.