MITRA (9571) - MITRAJAYA HOLDINGS BERHAD 23rd AGM (3rd June 2016)



MITRAJAYA HOLDINGS BERHAD
23rd AGM (3rd June 2016)
No. of attendance = 110
Highlights
1) FY16 Outlook and Target
>Targeted Turnover – MYR1.1b to MYR1.2b


2) Healthcare
> Disposal of 51% stake in OPTIMAX is expected to complete by next two months
> Cost of buying this stake is MYR3.6m and MITRA disposed it with MYR5.1m, gain on disposal will be MYR1.5m
> MITRA had acquired OPTIMAX for approximately 15 to 16 years, but the performance is limited. So, MITRA decided to dispose it and allocate the resources to better investment

3) South Africa Investment
> In FY15, MITRA had acquired a new piece of approximately 80 hectares land with 40m Rand
> Awaiting approval from development to proceed to the next stage
> In the process of getting approval to set up a medical centre and neighborhood mall
> The development is expected to complete in next 2 to 3 years

4) Local Property Development
> Wangsa 9 Residency has a GDV of approximately MYR800m
> MITRA is looking possibility for new development
> The loss in FY15Q4 in this segment was due to internal charge of interest loss in holding companies
> The property is on full swing in construction now, the take up rate and revenue recognition will start to pick up
> Current take up rate on Wangsa 9 Residency’s phase 1 and phase 2 are 80% and 40% respectively
> After completion in year 2018, it is expected to have good demand

5) Construction
> Latest book order – MYR1.69b
> Currently focus on tendering at KLANG infrastructure project, Johor rapid project and Sarawak Pan Borneo Highway
> Had tendered in all the 8 packages in Pan Borneo Highway and expected to have result in next 2 to 3 months. The packages are worth more than MYR1b
> In term of success rate, management don’t have a magic figure to estimate and they mentioned MITRA have sufficient order books to make profit to shareholders
> MITRA is focusing on quality project rather than quantity low margin project.

6) Currency Risk
> The currency loss in FY15 was due to South Africa Rand had become weak
> Its acquired land was paid by cash 40m Rand
> In FY16, MITRA’s Rand account is expected to have 100m Rand which approximately MYR30m if there is no acquisition

7) Negative Cash Flow
> MITRA was making money in FY15 but its cash flow appeared to be negative
> It was due to short term borrowing for working capitals as MITRA did not raise fund through right issues
> Besides, the clients normally take 2 to 3 months to pay MITRA
> There is a retention money of 5% for every projects

8) Complaint by one Shareholder
> The number of attended shareholders is 110 people, but the prepared Annual Reports and the prepared chairs only have 100 and 80 respectively
> Besides, there is no presentation slide prepared for shareholders for visualize






MITRA (9571) - MITRAJAYA HOLDINGS BERHAD 23rd AGM (3rd June 2016)
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