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Monday, April 27, 2009

Ken's RM700m projects enough for 5 yrs

KUALA LUMPUR: Ken Holdings Bhd expects to sustain its revenue and dividend payouts for the next two to three years despite a slowdown in the property market.

"The projects in hand will be able to sustain us for the next few years. So for this year and the next two to three years, we will be able to sustain revenue and dividend," chairman and managing director Tan Boon Kang said after its AGM on April 27.

The group had projects in hand with gross development value of RM700 million in the Klang Valley and Penang enough to keep the group busy for the next five years.

It was completing its project comprising of 80 luxurious service apartments in Bangsar with a GDV of about RM110 million and it would be officially launched in the third quarter, Tan said.

"The take-up rate was quite good during the soft launch but there has been cancellation of orders especially from foreigners.

"And we have had to spend some extra RM20 million for this project. So we may have to raise the price of the property at the official launch. But we have a special scheme for purchasers and we are quite confident take up would be good," he said.

For financial year ended Dec 31, 2008, KHB recorded lower net profit of RM6.3 million from RM8.4 million last year. Revenue dropped 35.7% to RM39.1 million from a year ago. A first and final dividend of four sen was proposed.

"This is a good opportunity to expand our landbank. As long as it is in a good location and at a fair price, we don't mind the cost. We have strong cash flow and zero gearing," Tan said.

Ken Holdings had over 138 acres of land in the Klang Valley, Penang and Genting Highlands. As at end-2009, it had RM22.2 million cash.

"People are not optimistic about the property market. But even during this time, some segments are still doing well and we believe property will further stabilise in the later part of the year," Tan added.

By The EDGE Malaysia

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