Metro Kajang

None of big institutional funds have stakes in MKH. The reason being is that MKH’s business portfolio includes a non-halal livestock business.

MKH is among the property companies with a fairly balanced business portfolio. It owns a sizeable landbank of 500 acres, mostly in the Kajang Sememyih area, as well as 16000 ha of oil palm estates in East Kalimantan . The plantation will be maturing in the next few years, hence providing a catalyst for the group.

PNB’s Skim Amanah Saham Bumiputera owned an 8.6% stake in MKH in 2004 but exited in 2009. But it has Public Bank Group Officers’ Retirement Benefits Fund, which held a 9.04% stake and Public Smallcap Fund with 0.81% and PCB Asset Management Sdn Bhd with a 0.42% stake as at end 2010.

Chen, together with his brothers and other family mambers own over 45% stake of MKH.

Its net asset per share as at Sept 30, 2011 stood at 2.77.

MKH had disposed of its non halal livestock farming business for rm64 million cash. MKH will utilise about rm30 million to pare down group borrowings, which stood at rm280.83 million as at Sept 30, 2011 while the remaining rm34 million will be used for working capital. The group held about rm65.8 million cash as at Sept 30, 2011.

The proceeds from the disposal will further improve its cash position for acquisition of more development land bank and plantation estates.

MKH had unbilled sales of rm405 million as at Nov 30, 2011.

MKH’s current 600 acre landbank, much of which has been converted for housing purposes, total estimated GDV is about rm4.5 billion over seven years.

However its plantations will be the catalyst for the group.