KUALA LUMPUR: Property developer Y&G Corp Bhd said it is on track to achieve its RM200 million sales target for its financial year ending Dec 31, 2014 (FY14).
“We have achieved about half of our target for all of our ongoing projects,” its executive director Datuk Yap Jun Jien told The Edge Financial Daily after the group’s annual general meeting yesterday.
The ongoing projects include affordable housing projects in Sentosa, Klang as well as in Beserah, Kuantan and Sri Jaromas, a luxury development located in Jenjarom, Selangor. The three projects have a combined gross development value (GDV) of RM350 million.
Yap had earlier said the group was targeting double-digit net profit growth for FY14.
“We are still on track to attain this, and the drivers for it will be the ongoing projects that we have,” he said.
In its first quarter ended March 31, 2014 (1QFY14), the group reported a net profit of RM2.73 million, a 67% increase from the RM1.63 million in 1QFY13.
On whether this profit growth trajectory would be maintained, Yap said, “What we are looking at is more of the bigger picture ... like what was said previously, we are still on track with our target of double- digit growth for the group this year.”
One of Y&G upcoming projects is a mixed development project on land it had purchased from Malaysian Agriculture Research and Development Institute (Mardi) for RM100 million cash. The land is located in the vicinity of the Kesas Highway and Subang Jaya, Klang and Shah Alam.
The project, comprising residential and commercial properties, is reported to have a GDV of more than RM1 billion, with an estimated development period of seven years and is expected to commence in the second half of 2015.
On the goods and services tax (GST) implementation in April next year, Yap said, “We definitely think the GST will affect the public in general. What we are doing now is to prepare ourselves for it, but at this point there are no plans to factor its impact into our property prices,” he added.
This article first appeared in The Edge Financial Daily, on June 24, 2014.
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