- Second consecutive profitable year despite impact from Covid-19 containment measures
- Unbilled sales and order book of RM393.0 million to provide earnings visibility until 2023
- Actively exploring merger and acquisition (M&A) opportunities to grow bottom-line and steer Group onto higher plane of growth
Selangor, Malaysia, 9 March 2021 –Boutique integrated property developer OCR Group Berhad (OCR, the Group, Bloomberg: ONC:MK) is expecting a stronger financial performance in the financial year ending 31 December 2021 (FY2021) on higher sales and construction activities amidst improving economic sentiment on gradual vaccination rollout.
The Group’s ongoing property development projects have experienced stronger buying interest in recent months; with Isola KLCC, Kuala Lumpur amassing take-up rate of 84%, while PRIYA Kuantan, Pahang, is almost sold out.
Launched in 2017, Isola KLCC is the Group’s maiden property development which sits atop a 0.4-acre land with a gross development value (GDV) of RM273 million; while PRIYA Kuantan, Kuantan’s largest affordable housing scheme, was launched in 2019 with a GDV of RM166 million.
The Mate, which was officially launched recently with a GDV of RM144 million, also reported an encouraging take-up rate of 80% for its launched units. The Mate is a freehold integrated suites development situated on a 1.0-acre land in the heart of Petaling Jaya, Selangor. The Mate not only offers studio layouts, one-bedroom and two-bedroom units, but also a level for co-living and co-working spaces.
Apart from property development, OCR has a construction arm that mainly involves as the main contractor for YOLO Signature Suites development in Bandar Sunway, Selangor.
The Group’s unbilled sales and orderbook stood at RM393.0 million, which will provide solid earnings visibility until FY2023.
“ Since resumptions of operations in June, we had ramped up our construction activities of our property developments and increased efficiency to ensure our projects were able to meet the stipulated deadline. We have substantially improved our position in 4Q20 through the tireless efforts of our entire team and are optimistic to handover PRIYA Kuantan in 2021 and Isola KLCC in 2022.
Moving forward, we are optimistic of achieving higher sales and stronger revenue contribution from our construction division, as market sentiment improved in line with the vaccines being gradually rolled out to the masses. We are hopeful that this will help spur the property market as we slowly return to normalcy.
Furthermore, we are actively exploring M&A opportunities to grow the Group’s earnings. We intend to leverage on our healthy net gearing position of 0.35x to acquire potential value-accretive projects, thus allowing us to reach a higher plane of growth.”
Billy Ong Kah Hoe(“王家豪”),
Managing Director of OCR Group Berhad
In the fourth quarter ended 31 December 2020 (4Q20), OCR recorded 28.1% higher revenue of RM27.3 million from RM21.3 million previously. The improved top-line came on the back of higher construction activities from both its development and construction divisions.
In terms of bottom-line, OCR maintained its profitability with a net profit of
RM1.8 million recorded in 4Q20, from a net loss of RM0.9 million in the third quarter ended 30 September 2020 (3Q20). The improved net profit was contributed by higher recognitions from all projects as construction activities were ramped up in 4Q20.
Despite the prolonged effects of the COVID19 pandemic, the Group achieved a second year of consecutive profitability in FY2020 with RM0.4 million net profit on RM73.0 million revenue.