Wednesday, May 28, 2014


Ots order book is at an all time high of rm1.2 billion. With that the company is positive on churning out strong earnings growth at least in the next two years from 2014.

Its main line of business is in the construction of infra projects and building works. It aims to secure an additional rm300 million worth of jobs to boost its order book of rm1.5 billion for FY2014.

It derives some 64% of its revenue from its construction division.

The company inked a rm227 million a deal with UEM Sunrise Bhd to build a condominium block in Cyberjaya. The largest outstanding contract in its order book is an rm428 million job involving the MACC building in Putrajaya.

It is currently (May 2014) tendering for rm1.75 billion worth of construction and infra jobs.

Mitrajaya’s property development segment could be another growth engine.

In the next few years from 2014, the potential to realize all these land bank in terms of value would give it a substantial cash flow. In the 2015 to 2016 period, its group revenue should increase significantly.

It is preparing to unlock the value of its over 200 acres of landbank in Bintang, Selangor and Melaka.

It had no plans in terms of acquisition of new land.

It was reported that its land bank was undervalued, which has not been revalued for many years. The value of the company’s 257.65 acres of landbnk is estimated to have almost quadrupled to rm624 million from its book value of rm160 million as at end 2013.

The company has plans to develop high end bungalow units in Pulau Melaka spanning 17.84 acres of reclaimed land.

The estimated land bank value is nearly double that of the company’s market cap of rm337 million based on rm0.855.

Mitrajaya owns 180 acres of freehold land in Bintang that is targeted for a mixed development by early 2016.

Its plan over the next few years from 2014 also includes the development of three blocks of luxury condominiums in Wangsa Maju with a GDV of rm650 million and a mixed development in Puchong Prima with a GDV of rm1 billion.

Besides its operations in Malaysia, it also has a self sufficient property development business in South Africa which has an undeveloped landbank of 152 acres.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.