NAIM Cendera Makes RM32.35 Mln Pre-Tax Profit

Naim Cendera Holdings Berhad (NCHB) achieved a profit before tax of RM32.35 million for the three months ended March 31, 2004 (Q1) on revenue of RM96.51 million. The corresponding figures for the same quarter last year, on a proforma basis, were RM20.21 million and RM54.14 million respectively.
NCHB is a leading property development and construction company in Sarawak and they announced their earning before tax growth of 60 percent on turnover which is up 78 percent against proforma result for the first quarter this year,Group chairman, Datuk Abdul Hamed Sepawi said the group’s growth trend remained strong and the Q1 performance was commendable follow-through from its annual results for 2003 which saw revenue increased by 11 percent and earnings up 53 percent over the 2002 annual figures.

The group has planned for future property development projects with an estimated gross development value of RM2.753 billion, besides a construction order book with an estimated total contract value of almost RM1 billion and is currently prospecting for RM5 billion worth of construction and property development jobs both locally and overseas.“With all of the above, the group will be kept busy at least over the next three years in construction and 10 to 15 years in property. The company was listed on the Main Board of Bursa Malaysia on September 12, 2003 and has since become one of the top 10 property counters,” Hamed said.

“The year 2003 has been an excellent year for the group, recording 11 percent growth in revenue to RM270.95 million compared with RM244.09 million in the year 2002 on proforma basis. Profit before tax rose to 51.29 percent to RM77.99 million compared to RM51.55 million in 2002 on proforma basis and profits attributable to share holders grew by 52.59 percent from RM31.77 million to RM48.48 million. Earnings per share for 2003 was RM0.194 against RM0.127 in 2002, based on the paid up capital of 250 million ordinary shares of RM1 each,” Hamed added.

Hamed said the excellent results were achieved on increased sales of homes at the group’s two flagship development Bandar Baru Permyjaya in Miri and Desa Ilmu in Kota Samarahan. With Miri becoming a resort city and soon to be designated as Shell’s Regional Technical Centre for South East Asia, the group foresees stable years ahead focussing on construction and property activities. Likewise, Desa Ilmu has the advantage of Kota Samarahan being an ‘education and medical hub’ which will be a contributing growth factor, being the largest integrated development in town.

“With the good profit for the first quarter, we are positive about achieving good results for 2004. The group looks for a better future with the current positive economic trend,” Hamed said.At the group’s AGM held yesterday, shareholders approved all resolutions including the proposed final dividend of 4.5 sen per share less at 28 percent giving a total dividend of 9 sen per share less tax for the financial year ended company’s paid up capital. The final dividend shall be paid on June 16 to shareholders registered as at May 31, 2004.

Later, at a press conference, Hamed told the press that the group’s venture overseas will only involved five to 10 percent of the group’s turnover over the next five to 10 years. “Our base is still in Sarawak and we will continue to take care of our base over the next five years. We have a land bank of over 3,000 acres located in places such as Kuching, Miri and Bintulu. We are currently carrying out commercial development on a two and a half-acre piece of land opposite Saberkas Complex, plus our ongoing projects at Desa Ilmu,” Hamed said.

The chairman also said that they are investigating and prospecting in places such as Iran and other Middle East countries and also neighbouring countries such as Indonesia and Vietnam.“We are now recruiting a team to be ready to go and we also hope to work with major construction groups with international experience, including Chinese groups in order to gain the synergy to face the competition,” Hamed added.