MKland ... Dec10

MK Land Holdings Bhd is not ruling out the possibilities of merging with other property players. However, he said the group had yet to receive any proposals. They would look at the potential value if such an opportunity arose.

Meanwhile, Lau said the group hopes to achieve better results in the current financial year ending June 30, 2011 (FY11) boosted by ongoing projects and new launches.

The group had achieved improved financial results year-on-year since FY08. For the first quarter ended Sept 30, MK Land posted a net profit of more than doubled to RM3.4mil from RM1.2mil a year ago. However, revenue for the period was lower at RM61.7mil against RM80.8mil previously. It posted a net profit of RM11.2mil on revenue of RM323.5mil in FY10.

Its main contributions would come from its projects in the Klang Valley as its other projects was somewhat weaker.

The group has also sold some of its assets and the cash generated was used to pare down its borrowings. It sold 23 acres of its land in Damansara Perdana and five acres of land in Cyberjaya.

The group had managed to pare down its debt to RM398mil as at June 30 from RM550mil in FY08 and intends to trim it further. Its gearing is 0.36 times.

The group had managed to lock-in over RM300mil from the sale of its land and joint venture projects.

The money from selling its land had come in but expects cash inflow from its joint ventures to flow in over a period of time.

The group still has capacity to borrow more.

MK Land has a total landbank of about 5,000 acres worth some RM800mil on its book. Some 4,000 acres of its land were in the northern part of peninsula.