New launches to boost Ho Hup
KUALA LUMPUR: Ho Hup Construction Company expects to see strong financial performance in the current financial year, supported by the launch of three new property developments.
Its chief executive officer Derek K.L. Wong said besides launching new properties in Bukit Jalil, Selangor; Kulai, Johor, and Kota Kinabalu, the group would generate additional revenue from its partnership with Malton Bhd.
Wong said the three new launches had gross development value (GDV) of RM1.7 billion.
“We have received positive feedback from the initial launch of our Kota Kinabalu project, with a GDV of RM800 million.
“The group expects the momentum to continue into the third quarter of this year.
“In addition, we expect to launch properties in Bukit Jalil with GDV of RM500 million by the end of the year, as well as Ho Hup’s first municipal development site, Iskandariah, in Kulai in the third quarter.
“Property development is important to us as it represents 70 per cent of the group’s business. We expect the local property market to be strong this year,” he said after Ho Hup’s annual general meeting (AGM), here, yesterday.
Present were Ho Hup chairman Tan Sri Sulong Matjeraie and chief financial officer Lee Heng Aun.
Wong said the group was also looking to increase its landbank for future property developments.
He said the group currently owned land in several areas in Peninsular Malaysia with GDV totalling RM4.5 billion.
“The group is looking for more landbank outside the Klang Valley with the potential to be developed,” he said.
For the financial year ended December 2017, Ho Hup’s revenue fell RM61.7 million, or 25.5 per cent, to RM179.7 million from RM241.4 million previously.
Profit before tax decreased to RM48.8 million from RM78 million the previous year, while the group’ s profit dropped to RM38.5 million from RM65 million previously.