Naim’s 3rd Quarter Results 2005

• NAIM EXPECTS BETTER 2005 RESULTS
• NAIM TO BETTER 2004 PERFORMANCE

For the nine months ended 30 September 2005, Sarawak-based property and construction group, Naim Cendera Holdings Berhad achieved profits before tax of RM76.3 million from a turnover of RM243.2 million.

The group reported a net profit after tax of RM46.9 million against the RM51.2 million registered in the corresponding period of 2004.

Naim Chairman, Datuk Abdul Hamed Sepawi revealed this after at the recent Board meeting held at Wisma Naim and explained that the lower profit was a result of a lower contribution from the group’s construction division. A number of contracts did not commence on schedule due to late awards by the relevant authorities.

Naim is confident that results for the year ending 31 December 2005 will be better than that achieved last year as they are working hard to ensure all works proceed at full steam for the next two months.

The group’s confidence stems from the enthusiastic response to the recent launch of its latest project – The Riveria, a mixed development just outside Kuching City.

80 percent of Phase I of The Riveria were sold within 3 days of launching which reflected Naim’s continuing confidence in the sustainability of the property market in Sarawak.

In addition to that, Naim’s mainstay development at Bandar Baru Permyjaya in Miri is also performing according to expectations. Total property sales for this development and its very successful Desa Ilmu township development in Kota Samarahan, amounting to RM184 million were recorded in the first nine months of 2005 compared with RM151 million for the same period in 2004.

In the construction division, the group has already commenced work on two of its projects namely, the RM313 million Sarawak Police’s General Operations Force (GOF) base at Batu Kawah and the RM176 million upgrading of the Kuching – Sibu Road.

According to him, the GOF base and the upgrading of the Kuching – Sibu Road are part of Naim’s outstanding order book of RM1.3 billion that will also contribute to performance in the final quarter of 2005 and making up ground lost in first half of 2005.

In the meantime, Naim expects to complete the contract for the construction of the RM76 million Institut Latihan Perindustrian in Miri by the end of 2005, two months ahead of schedule, thus keeping intact its record of early delivery of projects.

“The Board expects an improved performance for 2006 with its substantial and locked-in revenue of RM711 million. The Group is focused on achieving double digit growth in net profits, contingent upon government policies and continuing economic growth; favourable market conditions; low interest rates and favourable financing terms which affect the take up rates for its developments” he said.

Datuk Hamed is confident that Naim will be able to maintain its Cumulative Average Growth Rate (CAGR) of above 30% over the next three years.

“We are optimistic of the group’s future earnings as profits and revenue are expected to rise before the end of 2005” he said at the Board Meeting where Naim released its unaudited results for the third quarter of 2005.

Group Chief Executive Officer, Datuk Hasmi Hasnan said the recent commencement of works for the projects in hand and the encouraging response to its property development will improve the group’s earning in the next quarter and beyond.

Hasmi is optimistic for the last quarter of 2005 and looks forward to a much better performance in 2006, adding that the contracts in hand will contribute strongly to profits in 2006 and 2007.