TSR Capital eyes more property projects

By THE STAR

KUALA LUMPUR: TSR Capital Bhd aims to undertake more property development projects as it diversifies its income stream and reduces its dependence on government projects.

Currently, the construction group had several proposed joint ventures (JV) to undertake various types of developments estimated at RM5.2bil, said chairman Datuk Yaakob Mohammad.

From left: TSR Bina Sdn Bhd senior accountant Ng Kim Keong, TSR Capital managing director Tengku Datuk Mustapha Tengku Mohamed, Datuk Yaakob Mohammad and independent nonexecutive director Datuk Wan Abd Razak Ismail having a discussion during the company’s AGM

The proposed Medical City at @enstek in Negri Sembilan, to be developed in two components, would make up the bulk of the total value.

“We are developing a knowledge-based hospital, medical faculty, and research, development and innovation facilities for UiTM under the private finance initiative (PFI) model.

“Valued at RM1.7bil, construction will possibly start early next year for completion in three years,” he told reporters after the company AGM yesterday.

The second component of the Medical City comprises residential, commercial and industrial areas developed under the non-PFI model. Yaakob said TSR-TH Properties Sdn Bhd, a JV between TSR and TH Properties Sdn Bhd, would undertake the development. TH Properties is a unit of Lembaga Tabung Haji.

Scheduled for completion in 10 years, the second component has an estimated value of RM3.3bil.

TSR’s current construction order book exceeds RM860mil, which the group expects to contribute creditable earnings for financial year 2007.

It has tendered for approximately RM2bil worth of new projects.

On overseas ventures, Yaakob said the group was exploring but remained “conservative”.

For the financial year ended Dec 31, 2006 (FY06), group turnover increased 135% to RM147mil, while net profit rose almost seven-fold to RM7.6mil from FY05 on increased construction activities.

Revenue from construction activities more than doubled compared with the previous year’s, primarily due to new projects secured in 2006. Revenue from manufacturing grew four-fold on stronger orders for its concrete products.

At the AGM, shareholders approved a final dividend of 3.5 sen per share for FY06. Together with the interim dividend of 2 sen per share, total dividend amounted to 5.5 sen per share.

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