OCR expects higher 2018 earnings

PETALING JAYA: O&C Resources Bhd (OCR), which has turned around in the financial year ended July 31, 2017 (FY17), expects higher full-year earnings for FY18 driven by its strong order book and new project launches going forward.

Speaking to reporters at a press conference after the group’s AGM today, its managing director Billy Ong Kah Hoe said the group’s construction business has an order book of RM670 million, which includes in-house projects and external building works.

“In FY17, the major revenue contribution came from our construction business and we expect this to be maintained in FY18,” Ong said.

For the first quarter ended Oct 31, 2017, OCR saw its net profit more than triple to RM1.06 million from RM288,000 in the same period last year, helped by an increase in profit from the development and construction segments.

Going forward, Ong said the major projects that will contribute to the group’s earnings include the 1Malaysia People’s Housing (PR1MA) project in Malacca and Bukit Jalil, 1Malaysia Housing Projects for Civil Servants (PPA1M) project in Putrajaya and Tiara Bangi Homes project.

“These projects will keep us busy for the next three to four years,” he added.

Furthermore, he said the group is also expecting earnings recognition from the property development division, mainly derived from the newly launched luxury service residence project called Isola@KLCC, with a gross development value (GDV) of RM240 million.

To date, Ong said the project has achieved a take-up rate of 80%.

He added the group’s upcoming projects include the RM166 million mixed development project in Pahang, known as PRIYA scheme, RM330 million mixed development in Kuantan and RM134 million project in Malacca.

“Additionally, with a net gearing of 0.11 times, the company is well positioned to capitalise on any opportunities that arise,” he added, noting the group is continuously looking to acquire new land bank, particularly in the Klang Valley area.

OCR owns 104 acres of land bank, located across Klang Valley, Kuantan and Malacca, with an estimated GDV of RM870 million.

At its AGM earlier, the group obtained shareholders’ approvals to change its name to OCR Group Bhd as part of its rebranding strategy. – by Wan Ilaika Mohd Zakaria