PJ Development Holdings Bhd eyes profit after-tax of RM80-90 Million for FY2016

PJ Development Holdings Bhd eyes profit after-tax of RM80-90 Million for FY2016

KUALA LUMPUR, Nov 18 — PJ Development Holdings Bhd (PJD) aims to maintain its profit after tax (PAT) for the financial year ending June 30, 2016 at around RM80 million to 90 million.

Chairman Tan Sri Ong Leong Huat said amid the challenges facing the global and local economy in the last financial year, the company registered 57% decline in PAT to RM87.12 million from RM214.22 million in 2014.

He said with the completion of a merger exercise in September this year, PJD is now a subsidiary of OSK Holdings Bhd, and the group will now look into synergising its business operations to make it more efficient hence improving its profitability.

PJD is also involved in property; construction; manufacture of cables, wires and building materials; and hotel management focusing on the Swiss-Garden brand.

“With the property market slowing down in relation to sales and liquidity availability in the market, prices of properties are expected to moderate in the near term.

“Moving forward, the company would continue to be cautious with it business moves while looking for good opportunities,” Ong told reporters after the annual general meeting here Wednesday.

After the merger, the group’s emphasis will be on building human capital, improving processes and technology systems as well as upgrading assets to make it more efficient hence benefiting shareholders, he said.

Meanwhile, PJD Executive Director Ong Ju Xing said with the merger, the group owns about 1,012 hectares of landbank across Peninsular Malaysia as well as in Melbourne, Australia with a gross development value (GDV) of about RM15 billion, which depending on the market situation would last the company seven to eight years.

He said the two hectares of land in Melbourne will be developed into a fully integrated commercial development comprising malls, hotels, offices as well as residences that could contribute significantly to the group.

The Melbourne property is expected to be launched by the end of next year.

“PJD also targets to launch a few more projects in 2016 in Malaysia including the third phase of YOU City in Cheras, Luminari in Butterworth, and projects in Kuantan and Petaling Jaya,” he said.

These local projects have a GDV of about RM1.6 billion but their launches would depend on the market situation, he added.