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Friday, 28 August 2015

(The Star) Poised to be a centre of thrills

Belleview Group’s RM500mil Aman Central shopping mall, scheduled to open on Oct 1, will tap into the consumer market in the northern region and also Southern Thailand.
Its marketing and communications manager Christopher Koh said the mall in Kedah would be opened with 80% of its tenants.
“The entire mall is 90% leased out. It is designed to cater to a population of four million and visitors from other towns in Kedah as well as Perlis and Southern Thailand.
“Aman Central has over 1.25 million sq ft of gross floor area and 800,000sq ft of lettable area, making it the largest shopping mall in Kedah,” he told a press conference.
Koh said the mall is strategically located in the heart of Alor Setar, directly facing the iconic Alor Setar Tower.
“Due to its great location and accessibility, the six-level mall will be the most desirable shopping and entertainment hub destination in Kedah, Perlis and Southern Thailand.
“The mall, anchored by Parkson, Sam’s Groceria and Golden Screen Cinemas, will have more than 330 retail stores including H&M, Uniqlo, Guess, Padini Concept Store, Pandora, Nando’s, Starbucks Coffee, The Coffee Bean & Tea Leaf, Baskin Robbins and CHI Fitness.
“There is also a 30-lane bowling centre which is occupying 39,000sq ft,” he said.
He added that the mall also had 1,700 covered car parking lots.
The main attraction will be the ‘Aman Walk’.
This alfresco area is designed with two levels of outdoor seating areas where shoppers can enjoy beautiful and spectacular views of the Alor Star Tower.
Koh said the other unique features of the mall are the Glass Beacon Express Elevator lined with LED lights for shoppers to soak in the sights of the city skyline and the panoramic glass facade to view the streets along the Alor Setar Tower.

(The Star) Council to slash rate of new parking fine by half

After much hue and cry by motorists over the RM100 compound rate announced by the Penang Island City Council (MBPP) for illegal parking, the fine has now been reduced to RM50.
MBPP Financial Management Committee alternate chairman Joseph Ng said the new rate would come into force on Oct 1.
He said the council decided to review the initial RM100 rate late last month following feedback from the public on the high fine.
“We held discussions and meetings to review the rate.
“After the approval by the committee, it is now decided that those who park outside the designated parking lots, especially in the George Town enclave, will be slapped with a RM50 compound,” he told a press conference after a full council meeting at the Penang City Hall yesterday.
He said those who pay their compound within 14 days would still be eligible for a 50% discount.
Ng, however, stressed that the compound for parking at disabled lots, pedestrian pavements and bicycle lanes would remain at RM100.
It was reported that motorists who park their vehicles illegally or haphazardly on Penang island will be slapped with a RM100 compound effective Aug 1.
The council’s aim of raising the compound rates is to deter those who park in non-designated lots, spots meant for the disabled, along five-foot ways and bicycle lanes.

(The Star) Dining with a view of KL

Enjoy a stunning view of Kuala Lumpur’s skyline as you dine or enjoy a drink of your choice at Impiana KLCC Hotel’s rooftop restaurant Cedar on 15.
The main draw of this modern and contemporary eatery is its panoramic view of the city’s skyline.
The trendily designed restaurant comprises a spacious show kitchen, a private dining room, a U-shaped bar and dining area.
I arrived an hour before the review to beat the rush hour jam, allowing me ample time to enjoy a mocktail as I took in the city view.
The view is enough to score a second visit.
We started off the meal with a selection of bread rolls with walnut and olive oil as well as smoked salmon with coriander.
The Fresh Burrata Cheese was quite a unique starter, it looks like a sushi roll as it is wrapped in balsamic Gelée.
Next was Cream of Topinambour (also known as Jerusalem artichoke soup) with truffle oil and bocconcini cheese, served with truffle oil (RM38).
If you prefer clear soup, there’s the Clear Essence of Black Angus Beef with quail egg served with sherry (RM32).
It was quite fun to see the soups poured from a teapot before me.
For mains, we had wagyu beef (RM115 nett per 200g) served on Himalayan rock salt blocks and garnished with premium Vom Fass oils and vinegars.
The marble 6 wagyu with black peppercorn gravy is served with cherry tomatoes, potato fondant and grilled vegetables.
Cedar on 15 has re-engineered wagyu beef, using salt slabs permanently heated in the oven, to give it a healthy twist.
This method of cooking is said to lower blood pressure as no cooking oil is used.
It is recommended that the beef is placed on the rock salt slab for five minutes, it would absorb more saltiness if left any longer.
For those who prefer seafood, there’s Tiger Prawns on Salt Block served with asparagus and garlic baguette (RM88) and Pumpkin Seed Crusted Black Cod (RM78), both complemented with organic hazelnut oil.
I opted for the cod, which was pan-fried and served with mushroom tomato chutney, fennel mousse and sugar pea snaps.
I was really satisfied with my choice as the cod was well cooked and the pumpkin seed crust added texture.
For desserts, we had Chocolate Molten Cake with raspberry and homemade marzipan ice-cream, served with strawberry lime liquor (RM35) and Homemade Vanilla Bean Marshmallow with honey ice-cream, canache and crumbs, served with chocolate liquor (RM32).
The molten cake was heavenly as it was moist and rich, definitely something I would return for.
The chewy marshmallow dessert was quite a treat too. I have never had such a huge piece of marshmallow!
The restaurant also has various types of meat, cheese platters, an extensive wine selection and unique speciality cocktails. There are also choices for vegetarians.
CEDAR ON 15, Impiana KLCC Hotel, 13, Jalan Pinang, Kuala Lumpur. (Tel: 03-2147 1111). Business hours: 6.30am to 1am.
This is the writer’s personal observation and is not an endorsement by StarMetro.

(The Star) UEM-Sunrise upbeat on property campaign

Campaign launch: (from left) UEM-Sunrise chief financial officer Azhar Othman, Anwar and Zadil after unveiling the Signature Selection sales drive.
Campaign launch: (from left) UEM-Sunrise chief financial officer Azhar Othman, Anwar and Zadil after unveiling the Signature Selection sales drive.

KUALA LUMPUR: Property developer, UEM Sunrise Bhd aims to secure sales worth RM300mil to RM500mil during its two-month Signature Selection campaign, said managing director and chief executive officer Anwar Syahrin Abdul Ajib.

The campaign, which runs from Sept 1 to Oct 31, offers customers property projects with a gross development value of RM800mil launched two years ago in Mont’Kiara in Kuala Lumpur, Cyberjaya and Nusajaya, Johor.

He said among the projects were 11 Mont’Kiara, Residensi22 Mont’Kiara, East Ledang’s Lakeside Twin Villas and Nusa Idaman’s Twin Villas II.

“This inaugural campaign is organised to reward our loyal customers whom we refer to as Trsorians and to recruit new members to experience our enhanced lifestyle offerings,” he told reporters at the campaign launch ceremony here, yesterday.

Meanwhile, UEM acting chief marketing officer Zadil Hanief Mohamad Zaidi said the Trsorians would enjoy double royalty discounts when purchasing any of the properties under the campaign and/or double referral fees if they referred a buyer under the Trsor Prime Referral incentive programme.

“The new purchasers will also be accorded upfront Trsor card member privileges and instantly enjoy advance discount which is normally applicable on subsequent purchases only,” he said.

Commenting on the formation of the Special Economic Committee (SEC) by Prime Minister Datuk Seri Najib Tun Razak, Anwar said the committee should review some of the measures taken earlier to cool the property market.

“As a property developer, we want to see how the SEC can encourage people to buy houses ... perhaps, loosening the measures for first-time house buyers when applying for loans.

“As far as I’m concern, we are not alone in this situation and there are a lot of property developers who would like to see the same thing,” he added.

Najib, who is also Finance Minister, has unveiled the structure and functions of the SEC which will consider immediate and medium-term planning to further strengthen the country’s economic fundamentals. — Bernama


(The Star) Encorp hurt by softer property market

KUALA LUMPUR: Encorp Bhd posted net losses of RM10.60mil in the second quarter ended June 30 from earnings of RM1.5mil a year ago.

The property and construction company said yesterday that its revenue fell 50.3% to RM59.18mil from RM119.14mil a year ago. Its loss per share was 3.81 sen compared with earnings per share of 0.65 sen.

It said the weaker financial performance was due to lower sales achieved by the property division because of the softer property market and cost written off and recognition of foreseable losses of terminated construction projects.

Encorp said the property development recorded lower revenue of RM28.4mil in the second quarter compared with RM62.7mil previously. Pre-tax profit fell to RM8.9mil from RM16.8mil a year ago.

“This was because of lower sales achieved and completion of parcels of Cahaya Alam project in FY2014,” it said.

It said revenue from external construction contracts fell from RM29.4mil a year ago to RM3.6mil in the quarter in review. The division recorded a pre-tax loss of RM10.2mil in the second quarter from loss before tax of RM300,000.

“The lower revenue and losses before tax is mainly due to the termination of a construction project and foreseable losses being recognised during the quarter,” it said.

Encorp said trade and other receivables increased sharply to RM237.27mil in the period under review from RM130.08mil a year ago.

Under its current liabilities, loans and borrowing increased to RM270.2mil from RM122.70mil a year ago.


(The Edge) Creating something special for landed home buyers

Eco World Development Group Bhd is gaining the attention of homebuyers with its Limited Editions series of homes introduced recently.

With a total gross development value (GDV) of RM29.727 billion, The Limited Editions is a range of specially designed double-storey terraced houses based on a park home concept.

Marketed with the tagline, “Designed by desire”, the design of these park homes are partly inspired by houses built in the olden days, with emphasis given to natural lighting, good ventilation and a façade that comfortably blends in with a green environment.

Eco World CEO Datuk Chang Khim Wah told property+ that there are in total 1,144 units of such park homes to be offered in five of its property developments – two in the Klang Valley, two in Iskandar Malaysia, and one in Penang.

Sales of The Limited Editions started offwith the launch of Belleza and Hermosa terraced villas in Eco Sanctuary, Kota Kemuning, Selangor, in June. Their built-up sizes range from 2,537sq ft to 2,741 sq ft, with selling prices starting at RM1.088 million.

Chang said the villas have received overwhelming response from homebuyers. “Currently, 60% of the 358 units have been taken up”.

The remaining four projects in this series will be launched over the next two months. The other Th e Limited Editions homes in the Klang Valley will be Phase 1 of Mellowood park homes at Eco Majestic, Semenyih, scheduled to be launched at the end of September. It will have 111 units of terraced houses selling from RM880,000. On mainland Penang, the developer plans to launch Northampton Terraces at Eco Meadows in September as well. There will be 375 units of the Limited Editions units with a minimum selling price of RM700,000.

Over in Iskandar Malaysia, Johor, 167 units of The Chateau in Eco Botanic will be launched in mid-September with selling prices starting at RM1.28 million. The Alton homes at Eco Summer will be launched end-September, offering 133 units of terraced houses starting at RM845,000.

Chang said the company began planning for The Limited Editions series since the end of last year. These special homes either form the final phase or are the only phase of terraced houses with the park home concept in their respective townships.

“That’s why we called them The Limited Editions, as the design will not be repeated,” Chang stressed.

Although The Limited Editions comprises only terraced houses, their design is totally different from the conventional terraced house we see in Malaysia. For instance, Chang explained that in the conventional terraced house, the car porch is often the first thing residents see when they open the main door to exit the house. The second thing they see is the road.

But at Th e Limited Editions park homes, the car porch and the road have been “relocated” to the back of the house. By doing so, the developer could use the area in front of the house to create thematic green spaces or parks so residents can enjoy fresh air and greenery right on their doorstep. Each park features walkways, cycling tracks and community gathering places. Children can move around safely in this park; there will be no cars in it.

The relocation of the car porch area is also for the convenience of its residents. For instance, they could carry their grocery shopping from the car straight into the kitchen, instead of the usual longer walk from the front door to the back of the house where the kitchen is.

All the homes are guarded, landed, strata property. “This offers a very conducive precinct living which most people can afford. 

The houses will carry the signature of an Eco World township, such as the big arch with security booth at the entrance, strong fencing and access to linear gardens,” offered Chang.

“The Limited Editions series is designed to your heart’s desire, where luxury and nature meet and interact, changing the way we perceive the world around us. Design and architecture blend seamlessly, elevating the charm and allure of these timeless homes,” he added.

The company has previewed the projects to existing customers, some of whom have showed great interest. “Most potential buyers are people who are staying or working nearby; many of them are young couples or up-graders,” he said.

Commenting on the soft market, Chang said developers must offer products with unique selling points to attract buyers, regardless.

“Especially when the market shrinks, you have to be the one the market chooses. Besides a unique design, security has also become another main concern for homebuyers. We are putting more effort into enhancing the security features of our projects, such as building strong fences,” he shared.

Despite the softening market, Chang is confident that the unveiling of The Limited Editions park homes will contribute to revenue growth, placing the company on track to achieve its RM3 billion sales target for its financial year ended Oct 31, 2015.

SOURCE: [DIGITAL EDGE DAILY] 

(The Edge) Affluent appeal

Ever since the Tropicana Golf & Country Resort opened in 1996, Petaling Jaya’s PJU 3, PJU 4 and PJU 5 areas (see map) adjacent to the golf resort residential enclave have been considered as part of what is now popularly known as the Tropicana enclave.

Tropicana and the adjacent Sunway Damansara are straddled by Kota Damansara, Bandar Utama and Kelana Jaya. Developed mostly by Tropicana Corp Bhd (Tropicana) and Sunway Bhd (Sunway Damansara), the area is dominated by the exclusive Tropicana Golf & Country Resort and Tropicana Indah Resort Homes, offering two golf courses and good access to the amenities in neighbouring Kota Damansara, and the New Klang Valley Expressway (NKVE).

Tropicana Golf & Country Resort is a 625-acre gated and guarded community which is now home to multinational residents attracted to resort-style living set amidst rolling green, and anchored by the 380,000-sq ft Tropicana Clubhouse with the 27-hole East and West championship golf courses adjacent to it. Meanwhile, Tropicana Indah Resort Homes is located on 409 acres of prime land with abundant natural greenery, right next to the Tropicana Golf & Country Resort. The resort development comprises over 1,700 residential units, business parks and smart schools.

The Tropicana area is now a trendy address that consists a mix of high-end residences such as bungalows, luxury high-rises with several older low to medium-cost apartments as well as terraced houses.

Property prices in Tropicana and Sunway Damansara have increased tremendously over the past decade as more people become attracted by the amenities off ered in the vicinity, including higher education institutions, hospitals, commercial areas, malls and the soon-to-be completed mass rapid transit (MRT) station.

According to theedgeproperty.com’s analysis of transactions from 2012 to 3Q2014, prices of properties in both Tropicana and Sunway Damansara have moved up significantly.

The data shows that home values have been buoyed by the growing number of amenities in the area as well as in nearby Kota Damansara. One strong catalyst is the construction of the MRT line in this part of the Klang Valley.

As of 3Q2014, the average transacted price for non-landed residential property in Tropicana and Sunway Damansara reached RM539 psf, up 10.5% from RM488 psf in 3Q2013. This followed even stronger growth of 23.1% in the preceding year.

Director of LaurelCap Sdn Bhd Stanley Toh says Tropicana has been a hot pick for property buyers in Petaling Jaya due to its location.

“Generally, Tropicana and Sunway Damansara are sought-after locations in Petaling Jaya, because they are surrounded by many established and vibrant residential and commercial developments such as Bandar Utama, Damansara Utama, Damansara Jaya and Kota Damansara,” says Toh, adding that the current average transaction price psf of high-rise homes has hit RM550 to RM650 psf.

‘Yet to shine’
Although Tropicana and Sunway Damansara are mature townships with a full range of amenities, real estate agent Vincent Lim of Rina Properties Sdn Bhd does not recommend investing in the area unless buyers have strong holding power.

“I will not deny that property investors are constantly attracted to Tropicana and Sunway Damansara, but most of them are only surveying [the area]. Th e current property market situation in the said areas is one where supply is more than demand,” says Lim, who specialises in the area.

“There has been a real slowdown here since the implementation of the Goods and Services Tax, as buyers turn cautious and tend to wait and watch the market. I don’t think the average transacted price psf has increased very significantly since last year. This may be good news to homebuyers, but not to investors,” Lim adds.

One reason there is more supply than demand in the area is because of low rental yields, which Lim says is less than 5% on average. The area deters tenants due to the current bad road conditions as well as dusty and noisy environment as a result of the MRT line construction. The traffic congestion doesn’t help as well.

“Some of my clients are letting go of their units because they’ve failed to find tenants. One unit has been empty for the past six months. He’s selling slightly under market value now, but that is because he’s the first owner of the unit in a new development,” Lim notes.

“I will not recommend investors, especially those looking for instant returns, to get a unit here even though now is possibly the right time and right price to get one, if one has strong holding power. For those looking to own their own home, now could also be the best time to get a unit,” Lim advises.

After all, Lim describes Tropicana and Sunway Damansara as “one of the best places to live” in Petaling Jaya given the ample amenities in and around them, as well as their connectivity to several highways, such as the NKVE, Penchala Link and Lebuhraya Damansara–Puchong.

“Indeed, Tropicana and Sunway Damansara are nice places to live, work and play. The RM580 to RM620 average price psf is very reasonable for what they can offer. I believe anyone can tell the average price
psf will definitely surge up once the MRT is completed, which will not only ease traffic flow and improve the current environment but also bring more people into the area.

“If you think Tropicana and Sunway Damansara’s property market is shining, I would say it has yet to shine, but very soon,” says Lim.

Meanwhile CBD Properties (KD) Sdn Bhd executive director Daphne Chan concurs that the current housing rental market in Tropicana and Sunway Damansara is slow, with the average rental yield at 3% to 4%.

“Generally, rental yield is low in the eyes of investors in view of the elevated property values in the area. On the other hand, investors have benefitted from capital appreciation of their properties, especially with the development of Tropicana Gardens and the MRT station,” Chan says.

She added that a few non-landed homes recorded price drops of between 4% and 13% in July last year. According to theedgeproperty.com data, as at 3Q2014, Casa Indah 1 and 2 were transacted at an average RM627 psf and RM555 psf, respectively. However, Chan observes that as of July 2015, the average transacted prices for Casa Indah 1 and 2 have dropped to RM593 psf and RM546 psf, respectively.

Both Casa Indah 1 and 2 were developed by Tropicana Corp and completed in 2006 and 2008. Th e two high-density condos sit side-by-side on Persiaran Surian where the MRT station is under construction, hence their current unpopularity.

However, Chan notices that overall subsale prices of non-landed homes in Tropicana and Sunway Damansara are slowly catching up with new project launch prices, such as Tropicana Gardens, where units are selling at over RM1,000 psf.

“There is an opportunity for buyers [in] sub-sale properties, as values are keeping pace with new project prices,” Chan says.

Tropicana Gardens is an integrated mixed-use development project by Tropicana Corp strategically located on Persiaran Surian. Th e project consists of shopping mall, hotel, offices and serviced residences. It is linked to the MRT station.

LaurelCap’s Toh agrees that the average price psf of non-landed homes in Tropicana and Sunway Damansara will increase. “The average price psf will hit near the RM1,000 psf mark in the near future as seen in the sale of the third tower of Tropicana Gardens, the Cyperus,” Toh says.

The Cyperus was launched in November last year. It has a total of 406 units with an average selling price of RM1,257 psf. According to Tropicana Corp, it has been 80% sold so far.

However, Toh does not deny the current low rental yields. Besides traffic congestion, more supply of high-rise homes is coming on stream.

“Apart from Cyperus@Tropicana Gardens, other upcoming projects in the surrounding vicinity are Maisson@Ara Damansara and Lumi Tropicana,” Toh reveals.

The mid-cost, high-rise residential Maisson developed by Newfields Property Management Sdn Bhd is scheduled for completion in March 2017. It has a total 1,247 units of between 500 sq ft and 1,549 sq ft. Selling prices start at RM360,000. Lumi Tropicana has 744 units of serviced residences, 68 soho units and 30,000 sq ft of retail space. The developer, Th riven Global Bhd, is planning an official launch for the last quarter of this year.

Old is gold
Toh believes the affl uence of the general area will be very appealing to potential buyers in the longer term. The short supply of landed properties in the vicinity will also help raise demand for non-landed ones in the area.

“The landed properties in the area run into millions of ringgit and are out of reach for many, hence the apartments and condominiums are the next best things,” says Toh.

“I do not think the price [of non-landed homes] in the area will drop, but it will not increase as dramatically compared with three to four years ago. The MRT station will help boost rental yield slightly, in a gradual manner,” Toh notes, adding that the main investment return will still fall to capital appreciation.

CBD Properties’ Chan sees the older developments offering greater growth prospects. “There are some popular non-landed homes, such as Pelangi Apartment, Opal Damansara and Casa Tropicana offering positive price growth ranging from 1% to 10% in the month of July 2015 due to their lower price points,” Chan notes. Also popular are Permai Apartment and Bayu Puteri Apartment, which are currently selling at RM256 psf and RM574 psf respectively, compared with RM202 psf and RM470 psf in 3Q2014, as recorded by theedgeproperty.com.

Both properties are low-density, and located near highways, malls, schools and colleges. Higher-end high-rises that are showing strong appreciation include Opal Damansara (RM600 psf ) and Casa Tropicana (RM600 psf ), says Chan.

Opal Damansara is a semidee-concept high-rise developed by Sunway City Sdn Bhd. It consists of 248 units of standard apartments, duplexes and penthouses. It was completed at the end of 2007. The launch price for this development was RM270 psf.

Casa Tropicana is a neo classical-inspired condominium jointly developed by LBS Bina Group, Tropicana Corp and Tropicana Golf and Country Resort Bhd. It comprises five blocks, the first four of which were completed in March 2008, and the last in May 2013. The launch price for this development was RM200 psf.





(The Edge) Mitraland to unveil Sky Villas@16 Quartz in mid-Sept

PETALING JAYA: Mitraland Group Sdn Bhd plans to launch its Sky Villas @ 16 Quartz at Taman Melawati, Gombak, on September 4.

Mitraland’s sales and marketing general manager Eddie Wong told Property+ this low-density, high-rise project comprises 36 residential units with a built-up area of between 1,430 sq ft and 1,560 sq ft.

The average selling price is RM600 to RM700 psf, translating into a gross development value of RM38 million.

There will be one 11-storey block which consists of two storeys of parking podium and nine storeys of residences.

“The project started two years ago and was completed this month. During the preview event, we received overwhelming response from homebuyers, and some of them are ready to purchase a unit once the project is launched,” he says. This build-then-sell project is the final phase of the 16 Quartz residential development — an 8.63-acre landed villas project with a GDV of RM200 million — which consists of 81 units of three-storey courtyard homes and four-storey zero-lot villas.


This entire gated project has been completed by the middle of August. The facilities in 16 Quartz include a 25m infinity pool, wading pool, playground, pool terrace, viewing deck, BBQ deck, gymnasium, games room, pantry and function room.

SOURCE: [DIGITAL EDGE DAILY] 

(The Edge) Tambun awaiting green light for Raintree Park 2 and Avenue Garden

Tambun Indah Land Bhd
(Aug 27, RM1.33)
Maintain buy with a lower target price (TP) of RM1.81: Tambun Indah Land Bhd’s second quarter ended June 30, 2015 (2QFY15) results missed expectations. First half of FY15 (1HFY15) net profit only made up 41% and 40% of ours and market estimates, respectively.

The weak earnings were largely due to the early stage of construction for Raintree Park 1 and Pearl Avenue 2, while a few other projects were nearing completion and handed over.

New sales reached only RM25 million, down from RM146.3 million in 1QFY15. The amount was largely contributed by Raintree Park 1 (RM16 million), which has achieved a take-up rate of 65% to 70% since its launch in 1QFY15. The weak new property sales during the quarter were attributed to slow approval processes by the Housing and Local Government Ministry to launch new projects.

This has similarly affected other developers in Penang. Given the shortage of supply since 2HFY14, average take-up rates of all Tambun’s projects have hit 89.2% versus 81.2% in 2QFY14, due to the lack of new property products.

In the pipeline, Tambun is waiting for the green light to launch Raintree Park 2 and Avenue Garden, which have a combined gross development value of RM300 million. If approvals can be obtained on time, there are still opportunities to push property sales and earnings higher in 2HFY15, as construction for these two projects have already started.

We lower our FY15 to FY17 earnings forecasts by 10% to 15% to reflect the delay in launches and, hence, slower sales. Unbilled sales declined to RM408 million from RM443.6 million in 1QFY15.


In view of the macro headwinds and political risk, we lower our TP to RM1.81 (from RM2.28), based on a larger 30% discount to revised net asset value (from 15%). Despite the bottleneck in granting approval, we believe the housing market in the Penang mainland is still relatively healthy due to the lack of supply over the past one year. Thus, we maintain “buy” on Tambun. — RHB Research Institute, Aug 27



SOURCE: [DIGITAL EDGE DAILY]

(The Edge) KPJ Healthcare 2Q net profi t up 6.7%

KUALA LUMPUR: KPJ Healthcare Bhd, the country’s largest healthcare group, posted a 6.7% rise in second-quarter net profit in line with the increase in revenue and contribution from its hospitals.

Net profit for the three months ended June 30, 2015 (2QFY15) grew to RM35.99 million or 3.59 sen a share from RM33.74 million or 3.38 sen a share a year ago. Revenue for 2QFY15 also expanded 7.8% to RM714.27 million from RM662.82 million in 2QFY14.

It also declared an interim dividend of 1.75 sen per share for the financial year ending Dec 31, 2015 (FY15), payable on Oct 19.

For the six months period (1HFY15), KPJ Healthcare saw its net profit increase 9.3% to RM69.89 million from RM63.96 million in 1HFY14, while revenue jumped 12.5% to RM1.42 billion from RM1.27 billion.

On prospects, KPJ Healthcare said in line with the strong demand, expansion of existing hospitals and building of new hospitals will remain the group’s core strategies, as this will enhance the capacity and improve the service delivery for its patients.

“The group envisages that the new hospitals, which will have an average gestation period of between three years and five years, will continue to contribute towards revenue growth in 2015 along with the other existing hospitals,” it added.