Malaysia Property News is a free resource website sharing Daily Property News & information about Property in Malaysia, which related to, Property Market, Property Investment, Commercial Property , Hot Properties Malaysia, Real Estate, Retail Shop, Business Park, Condominium Malaysia, Terraces & Apartment Malaysia, Houses, Residence, Resort and many more.

Saturday, December 8, 2007

Bountiful year in store for SunCity

It is looking at record property sales of RM1.35bil

: Sunway City Bhd (SunCity) can look forward to a bountiful year with record property sales of RM1.35bil for the current financial year ending June 30, given the line-up of a number of upmarket projects.

The company can also look forward to sales from the April launch of its maiden project in India, Sunway Opus Grand Residency.

Of the new project launches amounting to about RM2bil during the year, some 50% will comprise medium to high-end residential properties.

In FY07, the company turned in sales of RM688mil from project launches worth RM841mil.

According to senior general manager of sales and marketing Sarena Cheah, SunCity will focus on the medium to high-end property sector in prime locations to augment its earnings, going forward.

“Over the next two to three years, we foresee properties priced from RM500,000 will make up at least half the new projects, while affordable housing will consist of only 5%.

Sarena Cheah showing a model of the South Quay development

“Commercial properties will comprise about 25% of the new launches and overseas projects the balance 20%,” Cheah told StarBiz.

She said SunCity was building up its upmarket product range in line with the company’s business model of maximising the value of its land.

The company’s land-bank of 3,300 acres has the potential to generate a total gross development value of RM13bil over the next six to seven years. Of this 68% are located in the Klang Valley, 28% overseas and the rest in Ipoh and Penang.

“In our property development initiatives, we believe having multiple strategically-located developments and projects with high velocity earnings growth driver will augur well for the company’s earnings potential,” Cheah said.

Analysts are bullish that SunCity’s line-up of more high-margin products next year will bode well for earnings going forward.

An analyst at CLSA Research said an estimated 80% of launches in the higher-end residential and lucrative commercial projects augured well for SunCity’s earnings in the next two financial years and there was scope for margin uplift and earnings forecast.

Aseambankers said in a recent research note that SunCity’s outlook remained good with unbilled sales of RM805mil as at end-September.

“We anticipate SunCity to register a 10% earnings per share growth in FY08, driven by RM2bil worth of new launches and target sales of RM1.4bil,” the report said.

It noted that SunCity’s net profit for the first quarter ended Sept 30 at RM44.96mil was above expectation on an adjusted basis.

Revenue rose 14.4% to RM359.1mil from the previous quarter of RM313.9mil as all business segments registered better performances.

The leisure and hospitality division also benefited from Visit Malaysia Year 2007 with margin expansion from increased average room rates and visitors arrival.

By The Star

No comments: