MKH Annual Report 2017

The affordable property market segment continue to enjoy good take up rate with purchasers focusing on good location with connectivity, affordable pricing, good product design and concept. For FY2017, the Group launched a total of 6 property projects with total gross development value (“GDV”) of approximately RM983.0 million namely Kajang 2 Precinct 2 (Phase 3 and 4) residential houses in Kajang, Hillpark Home 3 residential houses in Kajang, TR Residence serviced apartments in Kuala Lumpur and residential houses at the 558-acre township known as Hillpark @ Shah Alam North (Phase 1 - Palm and Phase 4 - Pinang). In line with the rising demand for transit oriented development (“TOD”) MKH has 8 projects within the vicinity of the greater Klang Valley’s urban public transport system, which includes the Sg. Buloh – Kajang Mass Rapid Transit (“MRT”) station, Light Rail Transit (“LRT”) station, Keretapi Tanah Melayu (“KTM”) commuter train station and monorail station; of which 3 projects have been launched, namely Saville @ Cheras, TR Residence and Kajang 2 township. Our property development division will continue to leverage on the demand for quality affordable residential properties. The Group’s upcoming property launches are primarily located in the much sought after location in Kajang, Semenyih and Kuala Lumpur, such as the ongoing township developments in Kajang 2 and Kajang East, the upcoming MKH Boulevard II project, which is a transit oriented serviced apartment development strategically located next to the Kajang KTM train station and the MRT station. Inspirasi Mont’ Kiara is another upcoming serviced apartment project located in Mont’ Kiara, Kuala Lumpur. We are also optimistic that the demand for crude palm oil ("CPO") will remain well supported from India, the European Union and China with current CPO price trading at approximately RM2,400/MT. The Group’s self-sustaining 18,388-hectare oil palm plantation with CPO mill running at 90MT per hour will continue to contribute to the Group’s earnings and profitability. We forecast improved CPO yield as most of the oil palm trees will reach their prime age in year 2018. 15 MKH Berhad • Annual Report 2017 Chairman’s Statement Kajang 2 is MKH's ongoing flagship township development that is aimed to be the next uptown of Kajang Artist’s Impression