George Kent’s 1H earnings above expectations
The engineering division experienced the best of both worlds with 1HFY17 revenue growing 85% and the profit before tax (PBT) margin expanding from 15.2% to 16.7%.
The engineering division experienced the best of both worlds with 1HFY17 revenue growing 85% and the profit before tax (PBT) margin expanding from 15.2% to 16.7%.
Late last month, George Kent (M) Bhd (via a joint venture [JV] with China Communications Construction Co Ltd [CCCC]) managed to beat six other contenders for Mass Rapid Transit (MRT) Line 2 track works worth RM1 billion (completion in May 2022).
Group’s property division has new property development project on the cards
The job win was not entirely surprising as management had previously guided that it was looking to undertake utilities relocation works for both MRT2 and Light Rail Transit Line 3.
MQREIT declared a dividend of 4.23 sen for the first half of FY16 ended June 30, 2016 (1HFY16), compared with 4.1 sen for 1HFY15, going ex on Aug 16, 2016, representing an annualised yield of 7.05% at a payout ratio of about 91.4%.
With the strong recovery in China’s property market, phase 1 and phase 2 of IOI Palm City in Xiamen are almost fully taken up.
We opine that it is now an opportune time for Tiong Nam to go warehouse real estate investment trust (REIT) listing given the renewed interest in high dividend stocks.
The market value of the land parcel and buildings, as appraised by Messrs DTZ Nawawi Tie Leung Property Consultants on April 22, amounts to RM262.5 million.
Property development increased by 72% y-o-y, mainly contributed by the Triling project in Singapore and IOI Palm City in Xiamen.
Major launches in FY16 include Sunway Gandaria (gross development value: RM200 million), Sunway Geo Residences 3 (RM400 million), Casa Kiara 3 (RM200 million), Velocity (RM200 million), Sunway Iskandar (RM400 million) and others.