MKH Annual Report 2019

027 M K H B E R H A D Property Development and Construction With the unbilled sales of RM1.12 billion as at 30 September 2019, the Group is well positioned for FY2020 with new and ongoing developments, such as, TR Residence @ Jalan Tun Razak, Inspirasi Mont’ Kiara, Hillpark @ Shah Alam North, Kajang 2 Precinct 2, Hillpark Residence, Kajang East Precinct 1, MKH Boulevard 2 and Nexus @ Kajang. Our FY2020 planned launches with total estimated GDVofRM1.48billionare in linewith theGovernment’s encouragement for more affordable housing and transit-oriented developments, comprising mainly of affordable to mid-ranged landed residential and high-rises located near the public transportation system. In addition, we continuously explore joint venture opportunities with potential partners with the aim to create value for the Group. Plantation Moving forward, our plantation division is expected to contribute positively to the Group’s future earnings. We expect the price of CPO to be well supported in 2020 mainly due to the demand from the adoption of B20 and B30 biodiesel programmes by Malaysia Group Revenue Group Profit Before Tax Property Development and Construction Plantation Hotel and Property Investment Others 69.2% 77.2% 1.1% 2.8% 3.8% 20.5% 17.9% 7.5% and Indonesia respectively and the anticipated tighther CPO supply from the oil palm industry. CPO prices have rebounded strongly from its low and was trading at above RM3,000 per MT (as at 10 January 2020) at Malaysia Derivatives Exchange which augurs well for the plantation division. Property Investment This division is expected to continue in providing a steady income stream to the Group by maintaining an average rental yield of approximately 5% per annum based on fair values of the properties as at 30 September 2019. MANAGEMENT DISCUSSION AND ANALYSIS REPORT Kajang East offers modern double-storey terraces and semi-detached homes nestled in lush greenery for tranquil living.