Kuala Lumpur, 15 September: Land & General Berhad and its group of companies (“L&G”) were incorporated in 1964 and have been listed on Bursa Malaysia since 1968. The L&G group is engaged in the property development, property investment, education and plantation business. The Group has grown and transformed over the years into a premier property developer specialising in development of condominiums and service apartments.
The Group’s growth is reflected in the continued rise in its total assets and net assets. Total assets have grown by nearly one and a half times over the five years period from 2012 to 2016, while net assets also grew by nearly one and a half times over the same period. Net assets per share grew by 36% over the same period. (refer graph 1&2). The group’s pre-tax profit was RM127.2million, down from RM192.3 million a year ago.
This performance comes on the back of a lower revenue of RM342.1 million, against RM465.8 million before. Revenue and profits were principally derived from the property division, led by the successful completion and handing over of Damansara Foresta Phase 1. Despite tightening measures by Bank Negara Malaysia and cautious spending by the public in the face of a slow-down in the economy, L&G is proud to announce steady accomplishments in the 53rd Annual General Meeting.
Compared to its performance since 2008, it has been on a steady upward growth trend, solidly gaining traction through the years.
L&G will be launching Phase 1 of Sena Parc in Senawang, which is situated at the previous golf course resort of Tuanku Jaafar Golf and Country Resort. Keeping with its philosophy, “Building Value for Tomorrow”, L&G is constantly planning for the future and creating end products and services that are distinctive from the rest, leveraging on our ability to innovate and reward our customers with an improved quality of life and peace of mind.
While property development will continue to form the mainstay of the Group’s business, its aspiration means that its horizon will continue to be broadened. The Group understands that with the increasingly competitive and challenging business environment, it will need to strive harder to ensure its people and stakeholders are not only rewarded but protected from the risks these challenges may pose.
L&G unbilled sales of RM 79.7 million and new development in the pipeline as at to-date is in excess of RM2.0 Billion which will keep the Group busy in the coming years. “We are confident that the property division will continue to expand with Astoria in nearby Jalan Ampang in Kuala Lumpur, Damansara Foresta Phase 2 in Bandar Sri Damansara and Sena Parc in Senawang”, stated Mr. Low Gay Teck.
L&G is also looking to replenish its landbank in the Klang Valley and other suitable locations. The Group has signed the SPA to acquire the piece of land in Seksyen U10, Shah Alam last year, and is at the final stage of completion of the acquisition, pending approvals from the relevant Authorities. L&G is in a good position to replenish its land bank with its RM 500 million cash reserve and close to RM 1.1 billion asset base.
The Group’s gearing ratio stands at only 0.12 times of its shareholders’ funds. “We will be very selective as we do not believe in buying just for the sake of buying,” says Low. He added that the current economic situation has been very challenging for the last 12 months and foresees that it will be challenging for the coming 12 months. In view of the current economic situation, Low foresees that land prices will be priced at more reasonable levels to replenish the Group’s land bank
The Group will be kept busy for the next five years with its property developments at Astoria@Ampang, Sena Parc in Senawang, U10 Shah Alam, Damansara Foresta Phase 3 and 4 and also re-development at Sungai Jernih. While keeping its eye on exponential growth, L&G will never lose sight of its commitment to operate in a responsible and sustainable manner; consistently giving back to society and the people who form an integral part of its journey.
“Our vision for the future is to reposition ourselves as a mid-size to large property player by market capitalization on Bursa Malaysia, via organic growth and acquisitions,” says Low Gay Teck. L&G will continue to safeguard the investment of its valued shareholders and the trust of its customers by building value into every development that bears its name.
It is a responsibility that is not taken lightly, as is evident in its strong performance year after year. The Group is confident that it will remain resilient with a continuous stream of sustainable projects in the pipeline.