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Saturday, June 21, 2008

TSR Capital confident of securing more jobs

TSR Capital Bhd is riding on potential property developments worth over RM5 billion and another RM800 million of already secured construction orders to bolster earnings, its top executives say.

The company expects earnings to swell further with some contracts from the RM1.2 billion of tenders it has submitted, chairman Datuk Yaakob Mohamad and managing director Datuk Tengku Mustapha Tengku Mohamed said.

Tengku Mustapha: Expects profit to improve as material prices stabilise

TSR has bid for open and selected jobs in infrastructure works, hospitals, training colleges, hostels and other building works, Yaakob said after its shareholders' meeting in Bandar Sri Damansara yesterday.

The company is confident of securing at least one fifth of the tenders this year.

"In the past, we have been able to achieve a success rate of about 20 per cent of the tenders submitted," Yaakob said.

TSR's current construction jobs worth RM850 million will keep it busy for the next three years. The biggest contract is the RM251 million design and development of Penang prison in Jawi.

TSR plans to expand its property development with its 273ha landbank in Selangor, Negri Sembilan and Kedah.

The biggest job it is embarking on is a RM3.3 billion development of a medical city on a 148ha site in Negri Sembilan.

Tengku Mustapha said the project will be jointly undertaken with TH Properties Sdn Bhd on a 70:30 basis. The Letter of Intent is expected to be secured by year-end.

TSR is to develop a similar medical city for International Islamic University of Malaysia on 66ha land at the same area in Negri Sembilan. Development value is estimated at RM1.7 billion.

TSR's revenue grew 58 per cent to RM233 million in its fiscal year ended December 2007, from RM147.8 million in 2006. Its pre-tax profit, however, eased slightly to RM10 million from RM10.7 million previously, due to higher material costs.

Tengku Mustapha expects profitability to improve as prices of materials such as steel, cement, fuel and other building materials stabilise.

The company is also reviewing its prices with clients, he added.

By New Straits Times (by Zuraimi Abdullah)

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