Naim 2Q2007 Profit Jumps 118% QOQ, On Track To Meet Target For 2007

Leading property developer and contractor Naim Cendera Holdings Berhad (Naim) has reported a 118% quarter-on-quarter increase in net profits from RM10.2 million reported in 2Q06 to RM22.2 million for 2Q07 with EPS of 9.08 sen for the second quarter ended 30 June 2007 compared with 4.17 sen achieved in the previous corresponding period. Revenue rose 61% from RM114.8 million in 2Q06 to RM185.4 million for 2Q07.

The Group recorded revenue of RM320 million for the 6 months ended 30 June 2007 as against RM214 million in 2006, an increase of 49%. Profit before tax for the period was RM65 million against RM45 million achieved in 2006. Contribution to revenue from the construction division increased from 47% in 1H06 to 63% in the current period. Property development contributed 30% while 7% was from sales from good/services.

Earnings Per Share attributable to equity holders of Naim rose to 18.36 sen compared with 11.74 sen achieved in the first 6 months of 2006. Net assets per share increased 13 sen from RM1.96 as at 31 December 2006 to RM2.09 as at the 30 June 2007. The Group continues to be in a net cash position with cash reserves of around RM99.0 million.

The Group is confident of another good performance in 2007 with higher contribution from the construction division in 2007 compared with 2006. The property division is expected to continue to contribute strongly to Group profits based on the actual sales achieved to date.

The major event for Naim so far in 2007 was the acquisition of a 45% share in three oil and gas companies comprising the Dayang Enterprise Group in May. The completion of the acquisition is scheduled for next week following which the investment is expected to contribute to Naim’s profits.

In addition to the Letter of Acceptance for the Proposed Upgrading of Access Road to Mukah Project received on 29 June 2007, the group was also awarded the Letter of Acceptance for the Proposed RM310 million Bengoh Dam project on 19 July 2007