Wednesday, 31 May 2017

(NST) Najib optimistic Cyberjaya City Centre project will turn city into global tech hub

The Malaysian Resources Corporation Bhd’s (MRCB) latest Transit Oriented Development (TOD) Project is highly anticipated to take the nation’s technology hub to the next level, he said.

“This is a game changer that will complete the transformation of Cyberjaya to become a global technology hub and a smart city.

“With a GDV value of RM11 billion, the Cyberjaya City Centre can provide a complete ecosystem to the area,” said Najib at the 20th Cyberjaya anniversary celebration.

The Cyberjaya City Centre project comprises a total land area of 141 acres with the gross development value of Phase 1 estimated at RM5.3 billion.

Najib said the Cyberjaya City Centre would be a mixed development featuring a convention centre and hotel, office towers integrated with a MRT station, shopping mall and serviced apartments with retail outlets.

The prime minister said he that he has been briefed that the first phase of the Cyberjaya City Centre project is well underway and the convention centre as well as the hotel were scheduled to be ready by 2019.

MRCB group managing director Tan Sri Mohamed Salim Fateh Din said the company would continue to leverage on its expertise as a TOD specialist.

“There is a lot to look forward to with Cyberjaya City Centre and I believe it will transform Cyberjaya into a truly modern city, befitting its status as the nation’s tech hub.

“With Cyberview (Sdn Bhd) as our partner, I am confident this project will be a success,” said Salim.

He also said the project would subsequently contribute to the real estate value of neighbouring areas such Dengkil and Sri Kembangan.

(The Star) Pulau Sekati bridge open to the public

KUALA TERENGGANU: The Pulau Sekati bridge connecting Kuala Terengganu and Pulau Sekati across the Terengganu River is now open to the public.

The 6km bridge linking Kampung Teluk Pasu to Losong through Pulau Sekati, will provide residents with an alternative route to the city centre, said Mentri Besar Datuk Seri Ahmad Razif at a signing ceremony to hand over the project.

He said only a 3km stretch from Losong to Pulau Sekati was opened to the public.

“The other 3km stretch linking Jalan Banggul Tuan Muda to Jeram Tok Kong will open on June 19,” he said.

Also present were state secretary Datuk Wan Nawawi Wan Ismail and State Infrastructure, Public Utilities, Energy and Green Technology Committee chairman Rosli Othman.

The RM245mil project is expected to reduce congestion on the Sultan Mahmud Bridge and Manir Bridge. — Bernama

(The Star) No free bus rides for foreigners

JOHOR BARU: The state government has no plans to extend the Bas Muafakat Johor (BMJ) scheme to foreigners as it remains focused on expanding the services to new areas statewide.

Johor Public Transport Corporation (PAJ) chief executive officer Abdul Rahman Salleh said the free bus services would continue to benefit only Malaysians living in Johor.

“The comfort and convenience of the rakyat is the priority of the state government and the local authorities,” he said.

He stressed that the government came up with the initiative for locals based on several factors, including to lessen the burden of the community due to rising cost of living.

“We are aware that the daily cost to get to the workplace, hospital, and other regularly visited places can be expensive to some.

“As such, the free bus services provided for the people would help lessen their burden besides achieving our aim of offering comfortable public transport to encourage more people to utilise such services,” he added.

Abdul Rahman was commenting on the suggestion made by Yong Peng assemblyman Chew Peck Choo to extend BMJ services to foreigners.

A Johor-based group, Gerakan Pemikir Muda, had reportedly objected to the idea, adding that it was a provocative suggestion and Chew had indirectly questioned the rights and privileges of the locals.

Johor Consumers Movement Association chairman Abdul Majid Kayat, also concurred with the group, noting that the focus should be on expanding the services to other parts of the state.

“If tourists or foreign workers want to use public transportation, they should be made to pay for it.

“What is the point of foreigners coming here and we give them all these services for free,” he questioned.

(The Star) Dual-carriageway road to reduce congestion at Sungai Tujuh checkpoint

MIRI: The upgrading of the road connecting Sarawak to Kuala Belait in Brunei will help resolve the pressing congestion issue at Sungai Tujuh Immigration checkpoint.

Sarawak Assistant Tourism Minister Datuk Lee Kim Shin saidconstruction works to expand the single-carriageway road into double-carriageway road began in March this year.

“Nonetheless, progress needs to be sped up in order to facilitate the flow of visitors passing through the checkpoint,” said Lee after visiting the road project.

Sungai Tujuh immigration checkpoint is one of Sarawak’s busiest immigration checkpoints.

Immigration Department’s data showed it received some 3.2 million visitors last year from 2.2 million a year earlier.

Lee also met with Immigration officers to discuss ways to further improve workflow at the checkpoint.

“Right now a minimum of five counters for cars and one for buses are open daily.

“However. during peak periods such as weekends, there should be more counters available,” he added.

(The Star) Penang is seventh in number of SMEs

Penang ranks seventh among Malaysian states in the number of small and medium enterprises (SMEs).

There are 40,824 SMEs in the state, comprising 6.3% of all such businesses in the country, said SME Corporation Malaysia chief executive officer Datuk Dr Hafsah Hashim.

Of the Penang SMEs, 90% are in the service sector, 6% are in manufacturing and 3% are in construction, she added.

A total of 4,486 of Penang’s SMEs have approached SME Corp for RM464mil in grants and loans.

“Up to April, SME Corp approved RM5.6mil in grants and loans for 43,028 SMEs who applied nationwide,” Dr Hafsah said.

She added that SMEs made up 98.5% of all business entities in the country.

She was speaking at the closing of the SME Carnival Week 2017 in Mydin Mall near Bukit Mertajam recently.

More than 90 SME exhibitors took part in the carnival held to mark Malaysia Start-Up and SME Promotion Year.

It was jointly organised by SME Corp and Companies Commission of Malaysia (CCM).

CCM chief executive officer Datuk Zahrah Abd Wahab Fenner read out a speech by Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hamzah Zainuddin.

Penang Bumiputra Develop-ment Focus Group chairman Datuk Muhammad Farid Saad, who is also the Pulau Betong assemblyman, closed the carnival.

(NST) DHL expects e-commerce mart to boom

DHL eCommerce, a division of leading logistics company Deutsche Post’s DHL Group, expects the e-commerce market in Malaysia to accelerate with various initiatives by the government.

“We expect the growth to accelerate even faster, especially when you consider recent initiatives such as the Economic Transformation Programme, the launch of Digital Free Trade Zone, the agreement between Alibaba (China) Co Ltd, Malaysia Digital Economy Corp and Hangzhou Municipal Government,” DHL eCommerce chief executive officer Charles Brewer told NST Business in a recent interview.

He said aside from Malaysia, DHL eCommerce sees fantastic opportunities in Southeast Asia.

“Of the 150 million digital consumers in Southeast Asia, two-thirds are already shopping online,” Brewer added.

In April, DHL eCommerce launched its domestic delivery operations in Malaysia with a range of customer-centric services catered to Malaysia’s growing e-commerce market.

With the launch, Malaysian online retailers will also benefit from DHL’s range of cross-border shipping solutions and network of fulfilment centres globally to enable their international expansion.

On the impact of the fluctuating petrol and diesel prices, Brewer said changes in fuel costs have a different impact on each of its four divisions but are automatically factored into pricing if of major relevance.

“The overall net impact on group results was therefore minor. In the long term lower oil price could act as an impetus for trade, resulting in higher volumes for the logistics industry,” he said.

To a question on companies making the right decision in choosing the correct e-commerce logistics partner for their business, Brewer said based on research, 66 per cent of shoppers attached importance to reliable delivery, while 57 per cent of consumers said current delivery options are not satisfactory.

Furthermore, 33 per cent of online shoppers have had bad experiences.

“Logistics is a vital component of the e-commerce eco-system. In fact, consumers today want greater choice, convenience and control in their delivery experience.

“Retailers, brands and marketplaces that want to increase their basket size, increase the percentage of returning customers, improve conversion rates and increase customer loyalty, need to ensure that they partner with a provider who understands this and is able to build a winning fulfilment product offering,” he added.

DHL eCommerce’s investment in Malaysia includes a 48,000 sq ft central distribution hub in Puchong as well as depots in Penang, Johor Baru, Cheras and Puchong and a fleet of two-wheel and four-wheel vehicles.

The fleet of vehicles will provide next-day deliveries to all urban areas in the Klang Valley, Penang and Johor Baru, and two to four-day deliveries to all other locations in the country.

(The Star) Maybank IB: Plenty of catalysts for Genting

PETALING JAYA: Maybank Investment Bank (IB) Research maintained its “buy” call on Genting Bhd despite its first quarter results missing expectations, saying there are “plenty of catalysts” ahead.

The research house noted that earnings before interest, tax, depreciation and amortisation (EBITDA) grew to a three-year high, mainly due to Genting Singapore Plc (GENS) and Genting Plantations Bhd (GenP).

It raised its FY17-FY19 EBITDA estimates by 3% and 5% and raised its target price to RM11.55.

“In our view, Genting still has plenty of catalysts.

“At Genting Malaysia Bhd (GenM), Sky Plaza will contribute on a full quarter basis from Q2 FY17, while Genting Highlands Premium Outlets, which is 50%-owned by GENP, ought to boost visitor arrivals when it opens in mid-June 2017.

“Theme Park Hotel will grow total room inventory by about 4% when it reopens by year-end,” it said.

At GENS, it noted that the redemption of its S$2.3bil perpetual bonds in September/October 2017 will boost Genting’s earnings by about RM120mil per annum going forward.

It said the 55%-owned Banten IPP will also contribute on a full-quarter basis from Q2 FY17.

The research house said Genting’s Q1 FY17 core net profit of RM473.9mil, which was a 34% increase year-on-year and 8% increase quarter-on-quarter, accounted for only 21% of its full-year estimate.

Assuming normal VIP win rates, it said, the first quarter typically accounted for between 23% and 25% of full-year core net profit.

However, it stated that Q1 FY17 revenue of RM4.8bil, which was up 1% year-on-year and flat quarter-on-quarter, was in line at 24% of its full-year estimates.

At the 53%-owned GENS, the research house noted that bad debts plunged 85% year-on-year to S$15mil while direct rebate rates fell 55bps year-on-year to 1.5%.

At 52%-owned GENP, higher crude palm oil (CPO) average selling price (ASP) of RM3,053 per tonne, which was a 34% increase year-on-year and fresh fruit bunches (FFB) output growth, which was 29% higher year-on-year, were achieved.

Consequently, it said, Genting’s Q1 FY17 EBITDA of RM1.8bil was the highest since the first quarter of FY2014.

(The Star) TRC eyes MRT, LRT projects

It wants to build up contribution from property segment

KUALA LUMPUR: TRC Synergy Bhd will aggressively tender for Mass Rapid Transit Corporation (MRT) and Light Rail Transit (LRT) packages this year amid efforts to build up contribution from its property segment, says managing director Tan Sri Sufri Mohd Zin.

TRC, mainly involved in the construction business, is gearing towards improving the contribution ratio to 80:20 from its current 90:10, of which 90% comes from its construction business.

In an exclusive interview with Bernama, Sufri said the construction division managed to secure RM1.01bil worth of new projects in 2016.

TRC is currently involved in associated works between Pasar Seni LRT Station and Kuala Lumpur KTM Station, development and upgrading the Pan Borneo Highway in Sarawak and extension of Sungai Buloh MRT Depot.

Sufri said TRC was eyeing similar construction projects for this year, given that it has experience in the field.

“We have all the experience in the past... we know the trade, we know the price and what we should do to execute and, as of today, we havegood reputation and good track record. I believe there will be more to come,” he said, adding that TRC was among the few who had been pre-qualified for the new phase of infrastructural projects for MRT, LRT and Pan Borneo Highway.

In terms of property development, the group’s property development division is expected to work with Prasarana Malaysia Bhd to build transit-oriented development (TOD) towns, hence increasing the contribution from its property segment.

The TOD project is a type of community development that included a mixture of housing, office, retail and/or other amenities integrated into a walkable neighbourhood and located within a half-mile of quality public transportation.

“Prasarana is the owner of the land and the project’s gross development value stood at RM1bil,” he said, adding that the project would be located at Station 2 LRT Ara Damansara, and was expected to be launched by second quarter of 2018.

TRC had ventured into the Australian property market, investing RM100mil on two projects namely Springridge Development in Wallan and East Edge Botanica Development in Melbourne.

In the Springridge Development, the group offered 906 units of housing lots set across 15.38ha. To date, 353 units have been sold. East Edge Botanica Development comprised a hotel unit and office suites.

“The contribution from TRC Australia to the group is about 5%,” Sufri said.

TRC is also undertaking an affordable house project with Putra Perdana Construction Sdn Bhd to develop the 1Malaysia Civil Servants Homes project in Putrajaya.

The contract, worth RM292mil, was awarded to TRC in 2015.

“And, for Selangor, we are also obligated to have an affordable housing project in the state. Our project in Ara Damansara will have the affordable housing component,” he said.

TRC’s pre-tax profit for the first quarter ended March 31, 2017 soared to RM14.88mil from RM1.16mil registered in the same period a year ago. The company’s revenue for the quarter, however, declined to RM132.94mil from RM193.21mil recorded in the corresponding quarter in 2016. – Bernama

(The Star) Tropicana aims for RM1.2bil in property sales

PETALING JAYA: Tropicana Corp Bhd is targeting about RM1.2bil in property sales this year, backed by new launches, including affordable homes.

Group chief executive officer Datuk Yau Kok Seng said that for this year, Tropicana planned to launch property projects worth RM1.6bil, focusing on landed residential houses, shop houses and high-rise affordable homes.

“The affordable home segment is new for the group. For the pilot project, we are targeting to launch 766 units this year,” he said after the company’s AGM.

He added that over the next two years, Tropicana aimed to build 3,000 homes priced below RM500,000 at its existing townships, Tropicana Aman in Kota Kemuning and Tropicana Heights in Kajang.

“The market demand at the moment is landed houses as well as urban affordable homes,” Yau said.

The affordable home segment, dubbed as “urban affordable homes”, would consist of strata-title apartment units with sizes ranging from 650 to 1,000 sq ft.

On Tropicana’s planned property launches for this year, Yau said the focus would be on the Klang Valley, especially for landed properties.

“About RM300mil of property launches is in Johor. Our launches for this year is focusing on landed properties and terrace houses,” he said.

Yau pointed out that Tropicana is also looking to expand its recurring income by focusing on international schools.

Currently, the group’s property investment portfolio includes St Joseph’s Institution International School Malaysia, GEMS International School, Tenby International School, as well as the introduction of a new mall and offices at Tropicana Gardens.

“Our investment in education will provide a good recurring income to the group, moving forward.

“Education is a key component in our integrated townships. We will be tying up with good international school brands for our future projects,” Yau said.

Tropicana posted a stellar first-quarter results ended March 31, 2016, that saw its net profit more than doubled to RMRM32.52mil from RM15.17mil a year ago.

Its revenue for the quarter grew 33% to RM381.9mil from RM286.9mil previously.

The group attributed the growth in its topline and bottom line to strong sales in property projects and advanced progress of construction works at many of its ongoing projects.

Yau said Tropicana is looking for potential partnerships to develop some of its 1,283 acres of land bank.

“As property development is our core business, we are looking at strategic investors to join in as partners to fast track the development of our land bank,” he said.

He said about 70% of the group’s land bank is located in the Klang Valley.

(The Star) Ekovest posts RM11.06mil Q3 net profit

PETALING JAYA: Ekovest Bhd’s net profit for its third quarter ended March 31, 2017 was flat at RM11.06mil compared with RM11.08mil in the previous corresponding period, while revenue in the third quarter rose to RM291.75mil from RM184.77mil a year earlier.

In a filing with Bursa Malaysia yesterday, the construction firm attributed its earnings to the commencement of preliminary and construction works for the Setiawangsa-Pantai Expressway (SPE).

“Higher sales recognition for the EkoCheras project coupled with advanced progress work have also contributed to higher revenue from the property development segment.”

Ekovest also said its net profit was affected by a one-off expense amounting to RM22.62mil on the recognition of the fair value adjustment pursuant to the granting of the employees’ share option scheme on March 9, 2017.

“The lower contribution from the preliminary and enabling work for SPE which has a better profit margin has also resulted in a lower profit before tax for the current quarter.”

For the nine months ended March 31, 2017, net profit increased to RM92.19mil from RM20.27mil in the previous corresponding period while revenue grew to RM770.26mil from RM502.51mil a year earlier.

On its prospects, Ekovest said its board expects the ongoing construction of the Duke phase-2 and SPE, toll revenue and the recognition of unbilled sales from property development activities to contribute positively to turnover and profitability in the current financial year.

“Barring any unforeseen circumstances, the board is confident that the group’s performance would be much better for the financial year ending June 30, 2017 compared to the previous financial year.”

(The Star) Fajarbaru profit up seven-fold

Top line boosted by strong property development showing

PETALING JAYA: Strong revenue contribution by its property development segment led Fajarbaru Builder Group Bhd’s net profit to surge by more than seven-fold year-on-year (yoy) to RM22.2mil in the third quarter of financial year 2017 ended June 30 from RM2.863mil in the preceding quarter.

In a filing with Bursa Malaysia, the construction firm announced that its top line for the third quarter ended March 31 increased by 110.8% yoy to RM198.9mil as a result of strong performance by its property development segment.

“In the property development segment, the group has completed its maiden project, the GardenHill in Melbourne, Australia and has recognised revenue of RM138mil. This represents about 57.7% of the gross development value (GDV) of the project in the current quarter. The remaining GDV will be recognised upon settlement by the purchasers,” said Fajarbaru in its filing with the stock exchange.

The firm did not announce any dividend for the quarter in review. Earnings per share were 6.14 sen.

As for the first nine-month period of the financial year 2017, the construction firm doubled its net profit to RM28.77mil, in contrast to the RM13.94mil recorded a year earlier.

Fajarbaru’s revenue in the same period increased marginally by 1.1% yoy to RM323.45mil.

Moving forward, Fajarbaru said it would continue to explore more business opportunities amid expectation of the construction business remaining challenging.

“The group believes that the project pipeline and sentiments will be more positive in the coming quarters, and the group is poised to participate in any of these construction projects. The group will continue to bid for jobs that have promising and exciting growth potential in order to replenish its order book and to enhance its future earnings.

“Meanwhile, the property development division is expected to bring more contribution to the group in 2017 as the group’s GardenHill project in Melbourne has been handed over to purchasers. The group believes there will still be demand for properties in prime locations with accessibility to good amenities at attractive pricing,” said Fajarbaru.

The firm added that its logging and timber trading segment will continue to generate significant contribution to its revenue on the back of stable average prices of timber products.

Fajarbaru has been on a roll over the last three weeks. Just last week, the company won a RM29.5mil contract from Pos Aviation Sdn Bhd for the proposed renovation and refurbishment at the KLIA Air Cargo Terminal 1.

The week before it also became China Railway Engineering Corp’s (CREC) local joint venture partner for the construction of the US$400mil (RM1.8bil) oil terminal of the just-revived Asia Petroleum Hub.

Fajarbaru will be the local joint venture partner in-charge of civil works.

Then in early May, it anoounced that its contract with Malaysia Airports (Sepang) Sdn Bhd (MASSB) has been extended, with a contract value of RM5.5mil.

The contract extension is based on the scope of services as per the original contract dated April 18, 2014 from MASSB for a period of one year effective from May 1, 2017 until April 30, 2018.

(The Star) EPF gets equity lift

Provident fund records 74% quarterly increase in investment income

PETALING JAYA: The Employees Provident Fund (EPF) posted a 74% jump in investment income to RM11.8bil in the first quarter ended March 31, as it benefited from rising global stock prices.

The value of its assets under management rose 2.2% or RM16bil from Dec 31, 2016 to RM747.2bil.

“The positive market condition was conducive for profit taking activities leading to higher gross investment income in the first quarter and also lower net impairment,” said chief executive officer Datuk Shahril Ridza Ridzuan.

The FTSE Bursa Malaysia KL Composite Index rose 6%, driven by growth in the banking sector and the return of foreign funds into the local bourse.

Meanwhile, global stock indices improved by as much as 12% during the quarter under review.

“While we had an encouraging first quarter, we remain cautious moving forward as the recovery in commodity prices remains weak with continued currency volatility,” Shahril said in a statement yesterday.

Investment income from its equity portfolio reached RM7.1bil during the first quarter, according to the EPF, up from RM2.5bil in the same corresponding period last year.

The sharp increase was boosted by the recovery in banking stocks, which contributed to about 30% of the trading and dividend income for the equities portfolio during the quarter.

“In addition to improvement in the domestic equity market, the global market also continued to provide opportunities for the EPF to realise its gains despite volatilities arising from the elections in eurozone countries, US president Donald Trump’s healthcare bill, the US interest rate hike and negotiations surrounding Brexit,” Shahril said.

“The market moving factors were alleviated by the positive economic numbers, including the revised growth forecast for major economies,” he added.

The EPF recorded lower net impairments from RM1.6bil to RM775.9mil this year, a decrease of RM865mil, following the improvement in all major markets.

Overseas investment accounted for 29% of its total investment asset and contributed 37% to the total investment income recorded in the first quarter of 2017.

Of the total investment asset, RM352.7bil, or 47.2% was in syariah-compliant investments with the balance invested in non-syariah assets. As of March, 49.1% of EPF’s investment assets were in fixed income instruments. This portfolio recorded an income of RM4.1bil, or slightly more than a third of the fund’s quarterly investment income.

Following the commencement of Simpanan Syariah on Jan 1, a total of RM952.1mil out of the total gross investment income of RM11.8bil was generated for Simpanan Syariah while RM10.8bil for Simpanan Konvensional.

Simpanan Syariah derives its income solely from its portion of the syariah assets while the income for Simpanan Konvensional is generated by its share of syariah and also non-syariah assets.

Shahril said the performance of Simpanan Syariah and Simpanan Konvensional would depend on the market’s performance, thus making short-term differences between the two inevitable.

“In the long run, the performance of the two should be similar following similar strategies implemented for both accounts,” he said.

The EPF, he said, remains focused on delivering real dividend target of at least 2% above inflation over a three-year rolling period for both Simpanan Syariah and Simpanan Konvensional.

Tuesday, 30 May 2017

(The Edge) Abang Johari explains plan for LRT in Sarawak

KUCHING: Sarawak Chief Minister Datuk Amar Abang Johari Abang Openg has explained to Minister in the Prime Minister’s Department Datuk Seri Nancy Shukri a plan to develop the light rail transit (LRT) service in the state.

Nancy, the minister responsible for the Public Land Transport Commission and Commercial Vehicle Licensing Board for Sarawak and Sabah, said the description of the project was among matters discussed in the meeting that lasted for almost an hour.

She said her courtesy call on the chief minister yesterday was to provide information on her position and portfolio, primarily matters concerning Sarawak, in terms of public transport.

“We have listened to the chief minister’s explanation on LRT in the state, and I need to know what the goal is and how can I help as a federal minister,” she told reporters after the courtesy call at Wisma Bapa Malaysia here yesterday.

In March, Abang Johari said the state government would formulate long-term plans that include the introduction of LRT services that would link Kuching, Samarahan and Serian, adding that the journey would take 30 minutes.

Nancy, who is also Batang Sadong member of parliament, said they had also discussed issues related to her constituency, such as housing, programmes for the community, business licences and others, and received positive feedback from Abang Johari. — Bernama

(The Edge) Mah Sing to acquire Sentul land for proposed serviced apartments

Mah Sing Group Bhd
(May 29, RM1.56)
Maintain neutral call with a higher target price of RM1.62:
Mah Sing Group Bhd has entered into an agreement with LTS Properties (M) Sdn Bhd, TS Law Corp Sdn Bhd and Law Wai Cheong to acquire 78% of the equity interest in Cosmowealth Housing Development Sdn Bhd for RM54.96 million (to be paid on deferred payment over 72 months).

Cosmowealth has entered into an agreement to acquire 8.5 acres (3.44ha) of freehold land in Sentul, Kuala Lumpur for RM95.07 million.

We gather that Mah Sing plans to develop serviced apartments with indicative built-ups of 650sq ft, 850sq ft and 1,000sq ft. The price will be from RM326,000 and total gross development value (GDV) of the project is estimated to be RM1.3 billion. Expected launch is in the second half of 2017.

Meanwhile, the valuation works out to be RM349 per sq ft while the land cost to GDV is 9.9%.

We view the acquisition price as fair as it is close to the land price in the surrounding area at above RM300 per sq ft. The land is located 8.3km away from Kuala Lumpur City Centre and situated at the centre of matured townships such as Kepong, Taman Seri Gombak, Setapak, Segambut and Batu Caves.

We are positive on the news as we believe that the good location of the land bank and at an
affordable price (from RM326,000 onwards) should translate into good take-up rates.

The land purchase is estimated to be revised net asset value (RNAV) accretive and, hence,
should result in enhancement of shareholder value.

We maintain our earnings forecast for financial year 2017 (FY17) and FY18 pending the completion of the land deal and the official launch of the project.

The valuation method is unchanged based on 25% discount to RNAV. — MIDF Research, May 29