Mitrajaya on track to achieve RM1.5b order book

KUALA LUMPUR: Mitrajaya Holdings Bhd said it remains on track to meet its RM1.5 billion order book target for its construction division in its financial year ending Dec 31, 2014 (FY14).

Its outstanding order book currently stands at RM1.1 billion.

“Achieving the RM1.5 billion target will not be an issue as we are bidding for some RM3 billion worth of jobs, out of which we are optimistic of securing at least RM400 million,” Mitrajaya managing director Tan Eng Piow told The Edge Financial Daily after the group’s annual general meeting yesterday.

Projects the group is bidding for include RM600 million worth of jobs at Petroliam Nasional Bhd’s refinery and petrochemical integrated development in Johor and building works at Bandar Nusajaya, also in Johor, worth RM620 million.

Currently, the group’s two biggest projects are the Malaysian Anti-Corruption Commission building in Putrajaya worth RM427.9 million and a condominium project for UEM Sunrise Bhd at Symphony Hill, Cyberjaya worth RM277.4 million.

The group is also targeting to achieve revenue of RM500 million to RM600 million in FY14.

“We should be on target to achieve this, as we have our RM1.1 billion outstanding order book, and we should be raking in RM30 million to RM40 million in revenue per month just from our construction division,” said Tan.

The group reported revenue of RM104 million for its first quarter ended March 31, 2014.

As for its property division, Tan said the group plans to launch its luxury condominium development in Wangsa Maju, Kuala Lumpur before the end of next month. This project has a gross development value (GDV) of RM650 million.

“We are looking possibly at a soft launch before the end of next month, with an official launch most probably in September or October,” he said.

In terms of the targeted take-up rate for Phase 1 of the project, Tan expects the group to achieve 70% to 80% within three months of the launch based on the feedback and enquiries it has received from potential buyers.

Mitrajaya also plans to develop 15 acres (6.07ha) of land in Puchong Prima, Selangor into a mixed development next year, with a GDV of RM1.5 billion.

“The authorities have given us their approval in principle, so currently we are finalising the design for it,” said Tan.

The development features a five-storey shopping mall, three blocks of serviced apartments and a boutique hotel.

Tan believes that concerns over the impending goods and services tax as well as the property cooling measures introduced in Budget 2014 can be overcome.

“Property is very much dependent on location, so when a property has good locality and [an appropriate] price range, people will find ways [and the necessary means] to acquire it,” he said.

On the group’s healthcare division, which comes under its 51%-owned Optimax Eye Specialist Centre Sdn Bhd, Tan said there are no plans to increase the number of Optimax centres.

“Currently, the number of centres is sufficient. We invest a capital expenditure of some RM3 million per year to upgrade the equipment at our centres,” he said, adding that the group’s construction and property divisions are the main contributors to the group’s revenue and he expects this composition to remain.

Tan says Mitrajaya plans to develop 15 acres of land in Puchong Prima into a mixed development next year.

This article first appeared in The Edge Financial Daily, on June 19, 2014.