Property sector to remain main earner for Lebar Daun

By THE STAR

SHAH ALAM: Lebar Daun Bhd, which has bid for more than RM500mil worth of property development and infrastructure projects, expects the property segment to remain its major contributor to revenue this year.

Chairman and managing director Norazmi Mohamed Nurudin said that some 70% of the bids the company had submitted were for property projects and the balance Government contracts.

“Property will be our major contributor and we are confident that the property market will boom. We are also eyeing Government jobs at both state and federal levels,” he said, adding that the company hoped to benefit from the Ninth Malaysia Plan projects.

The construction and property development firm has tendered for a few projects including infrastructure jobs. Norazmi said the company was “very selective” because it wanted to ensure that the projects it had tendered for had good margins.

“We hope to receive feedback on our bids in the fourth quarter,” he said after the company’s AGM yesterday.

Lebar Daun currently has an order book worth RM500mil, which is sustainable for five years.

Norazmi said most of the projects the company had bid for were in the Klang Valley.

“We will consider going to other places but the local market is sufficient for the time being. We have assessed Sri Lanka, Doha (Qatar), Dubai (the United Arab Emirates) and Indonesia and were asked to look into infrastructure and housing projects.

“However, we understand the risks are very high and the margins should commensurate with the risks,” he said.

Norazmi also hopes the construction of a mall in Section 14, Shah Alam, would take off by year’s end. The company has submitted the building plans for approval and expects the project to be completed in five years at a cost of over RM350mil.

For its first quarter ended March 31, the company’s net profit fell 60.8% to RM767,000 from RM2mil a year earlier. Revenue fell to RM16.7mil from RM22.3mil.

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