By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on June 25,2013
sharen@mediaprima.com.my
Published in NST on June 25,2013
BIGGER PROFIT MARGINS: Focus will be on niche, specialised areas such as environmental construction
MALAYSIAN Resources Corp Bhd (MRCB) will move into high-value construction with higher profit margins to drive the company forward, says group chief operating officer Mohd Imran Mohamad Salim.
"We will focus on niche, specialised areas, such as environmental construction. These would involve rehabilitation projects and coastal rehabilitation works. There are not many competitors in these areas. In building construction, there are competitors everywhere and margins are going lower," he said in an interview here recently.
Imran said MRCB will also diversify its property development activities to include niche projects and build more investment assets for higher recurring income.
Currently, MRCB is involved in the RM11 billion KL Sentral transport hub in Brickfields, Kuala Lumpur. Its other ongoing projects are Puncak Iskandar in Johor and Taman Kajang Utama in Kajang, Selangor.
For fiscal year 2012, MRCB's net profit slipped to RM60.12 million from RM93.52 million a year earlier, while revenue was marginally higher at RM1.28 billion from RM1.23 billion previously.
The group's property development and investment activities are currently the main contributors to the company's net profit and revenue.
Imran said MRCB will launch a roadmap next year, which will set the company's business direction and new strategies.
The plan is to have one-, three-, six- and 10-year roadmaps.
"In the current business environment, we must have a roadmap every two to three years to direct the company forward. We also need to be transparent and create value for our shareholders," he said.
Imran said under its new leadership, MRCB will be a growing company with a new business settings.
Business Times has reported that Imran's father, 55-year-old Datuk Mohamad Salim Fateh Din, the founder of Gapurna Sdn Bhd (GSB), will head MRCB as its group managing director by year-end.
GSB is also set to take a 16.8 per cent stake in the property group, following an asset injection exercise recently approved by shareholders.
MRCB is buying assets worth RM814 million from Nusa Gapurna Development Bhd (NGD). This includes taking full control of PJ Sentral Development Sdn Bhd (PJSD).
PJSD is developing the multi-billion ringgit PJ Sentral project in Petaling Jaya, a 70:30 joint venture between NGD and the Selangor State Development Corp.
Both MRCB and NGD share a common shareholder - Malaysia's largest pension fund, the Employees' Provident Fund.
 |
"We will focus on niche, specialised areas, such as environmental construction. These would involve rehabilitation projects and coastal rehabilitation works. There are not many competitors in these areas. In building construction, there are competitors everywhere and margins are going lower," he said in an interview here recently.
Imran said MRCB will also diversify its property development activities to include niche projects and build more investment assets for higher recurring income.
Currently, MRCB is involved in the RM11 billion KL Sentral transport hub in Brickfields, Kuala Lumpur. Its other ongoing projects are Puncak Iskandar in Johor and Taman Kajang Utama in Kajang, Selangor.
The group's property development and investment activities are currently the main contributors to the company's net profit and revenue.
Imran said MRCB will launch a roadmap next year, which will set the company's business direction and new strategies.
The plan is to have one-, three-, six- and 10-year roadmaps.
"In the current business environment, we must have a roadmap every two to three years to direct the company forward. We also need to be transparent and create value for our shareholders," he said.
Imran said under its new leadership, MRCB will be a growing company with a new business settings.
Business Times has reported that Imran's father, 55-year-old Datuk Mohamad Salim Fateh Din, the founder of Gapurna Sdn Bhd (GSB), will head MRCB as its group managing director by year-end.
GSB is also set to take a 16.8 per cent stake in the property group, following an asset injection exercise recently approved by shareholders.
MRCB is buying assets worth RM814 million from Nusa Gapurna Development Bhd (NGD). This includes taking full control of PJ Sentral Development Sdn Bhd (PJSD).
PJSD is developing the multi-billion ringgit PJ Sentral project in Petaling Jaya, a 70:30 joint venture between NGD and the Selangor State Development Corp.
Both MRCB and NGD share a common shareholder - Malaysia's largest pension fund, the Employees' Provident Fund.
No comments:
Post a Comment