Wednesday, January 21, 2015

Mitrajaya ...

It is maintaining its order book target of RM1.5bil for 2015. It is, however, looking to focus more on infrastructure projects that will be implemented in the coming year and next (2015 & Beyond).

These include new light rapid transit (LRT) and mass rapid transit lines, the West Coast Expressway and the other highways in the Klang Valley.

Tan is Mitrajaya’s founder and single largest shareholder with a 41% stake.

Mitrajaya has successfully grown its job wins from less than RM100mil a year during financial year 2008 to 2010 to over RM500mil currently (Nov 2014). New job wins year-to-date are at a record RM950mil, surpassing 2013’s high of RM501mil and bringing Mitrajaya’s total order book to about RM1.7bil now (Nov 2014).

Mitrajaya has secured a RM402mil contract to build the main building of a high-rise residential project for UEM Sunrise Group in Mont Kiara. In December 2013, it clinched a sizeable contract worth RM428mil to design and construct the headquarters of the Malaysian Anti-Corruption Commission in Putrajaya.

Mitrajaya stands a good chance of securing another contract worth RM200mil-RM250mil by year-end (2014).

Mitrajaya’s order book implies a strong cover of 7.8 times financial year ended Dec 31, 2013 (FY13) construction revenue versus peers average of 2.1 times, thus, provide a high degree of earnings growth visibility.

Its order book profile is also relatively ‘young’ with 75% comprising jobs that were secured less than a year ago, mitigating cost overrun risks.

Mitrajaya is a likely beneficiary of the rollout of the RM9bil LRT Line 3 announced in Budget 2015 recently given its track record in the ongoing LRT extension works.

Mitrajaya has been selected as one of Syarikat Prasarana Negara Bhd’s nominated subcontractors for the ongoing Ampang and Kelana Jaya LRT extensions. The packages involve works related to five stations worth RM146mil for the Ampang line and two stations valued at RM47mil for the Kelana line.

Construction is Mitrajaya’s key contributor at 64% of revenue as at the end of financial year 2013, followed by property development at 28% and optical healthcare at 6%.

For the second quarter ended June 30, it posted a net profit of RM13.57mil, which is more than double from the RM4.37mil recorded in the previous corresponding quarter.

Mitrajaya’s net gearing is relatively low at 14.8% as of the second quarter ended June 30, 2014. This has come off substantially from its high of 47.5% in FY08. Of its RM73.5mil total debt, 76% is short-term in nature, which is mainly used by the construction division for working capital.

As for its property business, the company has launched the first phase of Wangsa 9 Residency luxury condominiums in Wangsa Maju, Kuala Lumpur. The project has a gross development value of RM680mil. Another nearby project is Infiniti Residences that offers 523 units.

Up next, Mitrajaya is looking to roll out a mixed development in Puchong Prima in 2015. The company is still planning for the project worth RM1.5bil that will comprise a five-storey shopping mall, serviced apartments and a hotel.

These two projects will give its property development income a boost from the 28% contributed in 2013.

Mitrajaya is sitting on a land bank worth RM755mil versus its book value of RM188mil.

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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.