For FYE 2018, the Construction Division successfully replenished approximately RM475 million worth of order book by securing the platinum development of Cyberjaya Hospital in August 2017. This has boosted the Construction Division’s order book to RM1.5 billion.
We expect the Construction Division to be the driving force for the Group’s revenue on the back of the current strong order book that will provide earnings visibility for the next two to three years. Although we have a healthy order book, we still have the technical capacity and risk appetite to further participate in more high-value Government infrastructure projects.
With the Government’s ongoing review of the mega projects awarded by the previous Government and the subsequent termination of mega projects such as High Speed Rail and Mass Rapid Transit Line 3, we expect the construction industry to be relatively subdued for 2H2018. However, we foresee that these are short term corrective measures and the outlook for the construction sector should improve in 2019. Meanwhile, the Construction Division will focus on the execution of its existing projects. There are still strong infrastructure projects in the pipeline, such as Pan Borneo Highway packages that are yet to be awarded. Our proven and reliable track record in the
Government infrastructure projects will position us well to bid for these essential and demanding projects.
Property Development Division
Property development-related projects in the Malaysian market over the past 12 months have shown that we are in the burgeoning stages of demand for affordable housing and our Property Division is taking the necessary steps to ensure the long-term sustainability of our business prospects.
The Property Division’s performance for FYE 2018 was mainly derived from the following developments:-
• The Vyne, an affordable luxury condominium development in Salak South, Kuala Lumpur;
• Capital City, an integrated commercial development in Tampoi, Johor; and
• PR1MA Phase 2A Apartment and Phase 2B of Maple Residence @Laman View which comprises 469 units of PR1MA apartment and 194 units of stratified landed terrace homes in Cyberjaya, Selangor respectively.