MKH Annual Report 2019

024 A N N U A L R E P O R T 2 0 1 9 MANAGEMENT DISCUSSION AND ANALYSIS REPORT The Group’s capital resources comprise primarily of cash flows generated from operating activities, cash and cash equivalents, term deposits, fixed income funds and available lines of credit. As at 30 September 2019, the Group’s net gearing improved to 0.17 times (FY2018: 0.29 times), largely due to the above mentioned as well as prudent cash flow management. The Group continues to maintain a prudent approach towards managing its capital resources to ensure adequacy in meeting operational requirements and capital expenditure from time to time. SEGMENT RESULTS AND ANALYSIS Property Development and Construction The Group’s revenue was driven by this segment with the contribution from nine (9) key projects located in Kuala Lumpur, Mont’ Kiara, Kajang, Semenyih and Hillpark @ Shah Alam North of which three (3) new projects were launched in FY2019, namely, Kajang East Precinct 1, MKH Boulevard 2 and Nexus @ Kajang and these 3 new projects have contributed 64% of the total FY2019 new sales of RM823.5 million (FY2018: RM815.0 million). This division achieved higher revenue and PBT of RM775.9 million (FY2018: RM702.7 million) and RM122.2 million (FY2018: RM76.6 million) respectively from its ongoing projects namely, TR Residence @ Jalan Tun Razak, Inspirasi Mont’ Kiara, Hillpark @ Shah Alam North and Hillpark Residence coupled with HOVP of The Pinang and The Palm (phase 1A & 1B1) @ Hillpark Shah Alam North and Saville @ D’Lake Puchong. This division’s PBT was further improve by the adoption of MFRS 15. Group’s revenue increased by 3.7% to RM1.12 billion (FY2018: RM1.08 billion) As at 30 September 2019, the gross development value of nine (9) new and ongoing projects amounted to RM2.30 billion with unbilled sales totalling RM1.12 billion (FY2018: RM1.06 billion) namely, Hillpark @ Shah Alam North, Hillpark Residence, TR Residence @ Jalan Tun Razak, Kajang 2 Precinct 2, Inspirasi Mont’ Kiara, Kajang East Precinct 1, MKH Boulevard 2, Nexus @ Kajang and Bandar Teknologi Kajang shops. The Group is well-positioned to unlock the value of its existing development landbank in Kuala Lumpur, Kajang, Semenyih and Puncak Alam vicinities. Paired with good product design and strategic location essential lifestyle amenities, our ongoing projects recorded an average take up rate of 85%.