Selangor Dredging: New launches in pipeline

KUALA LUMPUR: Selangor Dredging Bhd plans to launch new property projects with a combined RM500 million gross development value (GDV) in the next six to nine months, said its managing director Teh Lip Kim.
She said the projects are link houses at Taman Melawati, Kuala Lumpur with a GDV of about RM175 million. The project slated to be launched in November will comprise of 79 units of superlink houses with a gated and guarded area, complete with clubhouse facilities.
Teh said another project with a GDV of about RM330 million to be launch next year would be the service apartment in Sungai Buloh, Selangor.
"Our unbilled sales is about RM1.04 billion and cash flow wise, the company is in a pretty good position in the next two years," she told reporters after the company AGM here yesterday.
She said the company is also constantly on the look out to purchase lands in Klang Valley and Singapore.
"We are in the midst of looking for lands. We have to look at the economic viability of the land location (before we purchase). We also have to see the competitors within the location that we plan to buy land. We have analyse whether our competitors are absorbing the demand or not," she said.
On its sales growth, she said: "This year to be realistic, we would be happy to maintain our sales. Of course we are hoping to grow the sales. It is an uphill battle (to go sales this year). We have to be realistic about the situation. We are looking at ways to differentiate our product to reach the people."
Teh said the outlook for the coming year is expected to remain challenging in view of stringent bank loan guidelines, implementation of measures to curb bulk sales and the recent increase in overnight policy rate.
She said the company has achieved a sales amounting to RM840 million for the financial year ended March 31, 2014. Of the amount, she said RM634 million were from projects in Malaysia and the remaining RM206 million from Singapore.
On Wednesday, Selangor Dredging announced a higher net profit of RM10.58 million in the first quarter ended June 30, 2014, up 14% compared to RM9.258 million a year earlier, driven by higher sales.