24 minutes
PETALING JAYA: Eupe Corp Bhd expects to achieve record revenue in the financial year ending Feb 28, 2024 (FY24) due to its strong property development project pipeline, according to group managing director Datuk Beh Huck Lee.
He said its current gross development value (GDV) is RM2.8 billion, compared with RM1.4 billion in FY20. Of the RM2.8 billion GDV, the Klang Valley is worth RM2 billion and northern region (Kedah) RM850 million.
“Our project pipeline is now twice as big as before the pandemic. Our project Est8 has achieved 85% take-up rate since we launched it in October last year. We have also secured new land Belfield in KL for our biggest project so far. We also bought a large parcel of prime land in Sungai Petani, and this will secure our northern property division.”
Beh said Eupe is emerging from the pandemic in good shape and is on its way to re-establishing its financial momentum.
Pandemic-related delays in its Kuala Lumpur project launches in the previous financial year will continue to have an impact on the group’s results for the current financial year.
“However, the flow-on from Eupe delivering on its expanded project pipeline will start to be reflected in the group’s results in FY24, when revenue and profit before tax outcomes are expected to exceed those record levels achieved by the group prior to the pandemic,” Beh said.
Eupe will be focusing on its property development division for its next three financial years (FY23-26), as it contributed 92.8% of its revenue of RM223.1million for FY22.
The group’s main divisions comprise property development, property investment, property construction, and chalet and golf course management.
On outlook, Beh said he believes the company is in a safe position due to good sales take-up and cost-control mechanism.
From a developer’s perspective, Beh said, the market has the potential to improve.
Since buyers are more careful now, a developer which can offer quality products within the price range of their target market will receive good response. “The challenge is that you have to maintain your cost control.”
At an EGM today, Eupe shareholders approved the group’s purchase of a 4.81-acre land parcel at Belfield, which is located near Kuala Lumpur’s city centre. It is planning a mixed residential or commercial development on the site, with an estimated GDV of over RM1 billion – the group’s biggest property project to date.
The other major land parcel involves 53.74 acres of prime land in Sungai Petani. The proposed development on this site will be planned around the concept of a “place-making” hub that integrates residential, commercial and community facilities and include over 800 homes. The project has an estimated GDV of RM350 million.
