Fajarbaru clocks in net profit in 4Q

KUALA LUMPUR (Aug 25): Thanks to higher revenue and contributions from the property development as well as the logging and timber trading segments, Fajarbaru Builder Group Bhd posted a net profit of RM10.02 million in the fourth quarter ended June 30, 2017 (4QFY17) compared with a net loss of RM3.2 million a year ago.

Quarterly revenue climbed 24.8% to RM129.87 million from the RM104.06 million it recorded in 4QFY16, the group said in its filing with Bursa Malaysia.

For the property development segment, the group said it has further recognised revenue of RM55 million from its Australia project, the GardenHill, in 4QFY17.

In Malaysia, Fajarbaru said it successfully launched its maiden property development project and has started recognising revenue of RM9.7 million.

As for the logging and timber trading division, the group said it contributed higher revenue of RM32.2 million in 4QFY17 compared with the RM29.3 million a year earlier, mainly due to an increase in timber prices and demand during the period.

As for the full year ended June 30, 2017 (FY17), Fajarbaru recorded a net profit of RM38.79 million, which more than tripled from the RM10.74 million it posted in FY16.

Full-year revenue came in at RM453.32 million, up 6.9% from RM423.91 million in FY16.

On prospects, Fajarbaru said with the spillover of major projects announced, it believes that the project pipeline and sentiments ahead will be more positive in the coming quarters, and it is poised to participate in any of these construction projects.

“The group will continue to bid for jobs that have promising and exciting growth potential in order to replenish its order book and to enhance its future earnings,” it said.

Meanwhile, the property development segment is expected to bring more contribution to the group. Its maiden project, Rica Residence Sentul, a 39-storey serviced apartment project with gross development value (GDV) of RM280 million on Jalan Kovil Hilir, Sentul, which was officially launched on Aug 3 this year, is strategically located within walking distance of the KTM Sentul Station and Sentul West Station of the future Mass Rapid Transit Line 2 linking Sungai Buloh and Putrajaya.

“In view of the strategic location, the response from the public is encouraging and 70% of the units have been taken up as of to-date,” it said.

“The group has adopted robust marketing efforts through improved products and widened sales networks to ensure that all potential markets are tapped into, as well as optimising opportunities for growth,” it added.

As for its projects in Puchong and Melaka, these will be launched upon improvement of the market situation.

“The group will continue to strive for excellence with an emphasis on delivering excellent customer services. The group believes that there will still be a demand for properties in prime locations with accessibility to good amenities, at attractive pricing,” it said. — theedgemarkets.com

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