Investment Idea GBGAQRS (mid/long term)
Investment Idea GBGAQRS (mid/long term)
Good prospect under construction & property business.
Extracted from Q4 2020 Financial Results (Company Announcement)
i) Construction Division
The Group’s construction division is armed with a healthy outstanding orderbook of RM1.4 billion, that will sustain earnings and cashflow contribution up to FYE 2023.
In FYE 2021, we are targeting an orderbook replenishment rate of RM400 million. Year to date, the construction division has secured RM84.8 million in new construction jobs. While we continue to be on the lookout for new construction jobs, prospective jobs will have to generate healthy margins and cashflows.
Progress works at both our construction and property development divisions are at full- capacity, and barring any unforeseen circumstances, would stage sequential growth in activities, in line with the S-Curve trend.
ii. Property Development Division
Response of our property developments continues to be encouraging, with a total of 530 units or RM302.6 million of our entire development portfolio of 1,645 units or RM1.1 billion has been sold as at 31 January 2021. In addition, we have 148 units of properties worth RM91.5 million that has been booked, and are in the process of sales conversion. As at 31 December 2020, our unbilled property sales stood at RM244.5 million.
The all-time low OPR rate, leading to lower mortgage financing rates has given rise to interest in our developments. Aside that, the proposal in Budget 2021 for a stamp duty exemption for the memorandum of transfer and loan agreements for homes worth up to RM500,000 an immediate benefit to us, as a bulk of our properties that are for sale are within the range of incentives by the Government.
Disclaimer: This trading idea is strictly intended for informational purposes only so please do your own analysis before making any investment decision.
Good prospect under construction & property business.
Extracted from Q4 2020 Financial Results (Company Announcement)
i) Construction Division
The Group’s construction division is armed with a healthy outstanding orderbook of RM1.4 billion, that will sustain earnings and cashflow contribution up to FYE 2023.
In FYE 2021, we are targeting an orderbook replenishment rate of RM400 million. Year to date, the construction division has secured RM84.8 million in new construction jobs. While we continue to be on the lookout for new construction jobs, prospective jobs will have to generate healthy margins and cashflows.
Progress works at both our construction and property development divisions are at full- capacity, and barring any unforeseen circumstances, would stage sequential growth in activities, in line with the S-Curve trend.
ii. Property Development Division
Response of our property developments continues to be encouraging, with a total of 530 units or RM302.6 million of our entire development portfolio of 1,645 units or RM1.1 billion has been sold as at 31 January 2021. In addition, we have 148 units of properties worth RM91.5 million that has been booked, and are in the process of sales conversion. As at 31 December 2020, our unbilled property sales stood at RM244.5 million.
The all-time low OPR rate, leading to lower mortgage financing rates has given rise to interest in our developments. Aside that, the proposal in Budget 2021 for a stamp duty exemption for the memorandum of transfer and loan agreements for homes worth up to RM500,000 an immediate benefit to us, as a bulk of our properties that are for sale are within the range of incentives by the Government.
Disclaimer: This trading idea is strictly intended for informational purposes only so please do your own analysis before making any investment decision.
Comment:
TP1 has been achieved.