SHL to launch RM200m project by year-end

KUALA LUMPUR: SHL Consolidated Bhd plans to launch more residential units in its flagship development at Bandar Sungai Long in Kajang by the end of this year, finance director Jack Wong Tiek Fong told reporters after the company AGM yesterday.

The project, consisting of terraced houses and affordable homes, will span across 35 acres (14ha) in Sungai Long with a gross development value of RM180 million to RM200 million, according to Wong.

There will be 320 terraced houses with sizes ranging from 1,900 sq ft to 2,000 sq ft each, while the affordable homes comprise 130 units of 815 sq ft each in two five-storey blocks.

Wong expects take-up rates to be very good as SHL has received hundreds of registered potential buyers for the units.

SHL has about 550 acres of combined landbank in Cheras, Semenyih, Rawang, Batang Kali and Kuala Pilah, said Wong. The landbank will be used for future residential and industrial developments, he added, citing that it is sufficient to sustain the company for eight to nine years of development.
SHL has also been seeking strategic locations to acquire more land.

“Our first priority is to acquire land around our flagship projects in Bandar Sungai Long, Kajang and Alam Budiman in Shah Alam,” said Wong, adding that the Klang Valley is the priority but the company is also looking at Penang.

He did not disclose the specific locations as they are still under negotiations. However, Wong expects them to be completed within six months.

As at June 30, SHL had a healthy balance sheet with cash reserves of RM187 million against borrowings of RM990,000. With a net cash position of RM186 million, this represents cash per share of 76 sen.

For its FY11 ended March 31, SHL posted a lower revenue of RM190.17 million compared with RM249.55 million in FY10. Net profit increased marginally to RM27.37 million from RM26.48 million a year ago.

Although SHL saw a lower revenue in FY11, Wong said its profitability was maintained due to higher margin products.

In May 2010, Goodstock Land Sdn Bhd (GSL), which is involved in property investment, became a subsidiary of SHL. Wong expects GSL to contribute an annual revenue of RM2.4 million and profit before tax of RM1.8 million.

Shares of SHL last traded at RM1.37. They had hit a 52-week high of RM1.66 and a low of RM1.07.