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MK Land Holdings Bhd’s net profit jumped more than two-fold to RM7.2mil for the third quarter ended March 31 against RM2mil a year ago due to stronger performance of the property segment.

Its revenue for the period rose to RM165.1mil from RM94.7mil a year ago.

Going forward, MK Land’s executive chairman Tan Sri Mustapha Kamal expects “double-digit growth” buoyed by its on-going property projects and new launches.

In a briefing yesterday, Mustapha said the “momentum” for the group to achieve double-digit growth was already in place.

MK Land’s incoming CEO Lau Shu Chuan with Tan Sri Mustapha Kamal.

For the nine months ended March 31, MK Land posted a higher net profit to RM15.8mil on revenue of RM292.9mil.

The higher net profit was due to higher revenue and lower finance cost.

Its property development segment generated RM249.5mil, representing 76.2% of the total revenue for the nine months ended March 31. The revenue was mainly from its property projects in the Klang Valley, particularly its Damansara Perdana development.

MK Land had also appointed Lau Shu Chuan as its chief executive officer effective June 1, taking over from Mustapha. Lau is currently the chief operating officer. Mustapha will be redesignated as non-executive chairman.

Mustapha made a comeback as executive chairman on June 25, 2008 when the company was facing difficulties. The company posted a net loss of RM60mil for the financial year ended June 30, 2008 (FY08). He managed to steer the company out of turbulence and felt that it was time to pursue his charity works through his foundations – Yayasan Emkay Foundation, Orang Utan Island Foundation and Pulau Banding Foundation.

“I do not want you to speculate. There’s no other reason,” he said when explaining his leave from the company. Mustapha will remain as the major shareholder of MK Land.

Lau agrees with Mustapha on the company’s prospects. He said its products were well accepted in the market and that the group had a landbank of 5,000 acres with various developments.

On its gearing level, Lau said MK Land had managed to bring down its borrowing significantly. Its total borrowing stood at RM275mil against its shareholders fund of RM1.1bil.

“We will bring it (borrowings) lower. Our interest is eating into our profit. We have a systematic plan to bring down the gearing level,” he said. Lau, however, said the company’s borrowings might increase as it bought new landbank and to finance its joint venture project to develop affordable housing in northern Bangalore, India.

Meanwhile, he said MK Land’s shares were “undervalued”. He said the price, at over 30 sen, was still below the company’s net tangible assets (NTA). As at March 31, MK Land’s NTA stood at 87 sen per share.

Related Posts:

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• IJM CEO Velayuthan Tan retires
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The group’s boss and major shareholder, Hwang Ding Kuo@James Hwang, says he will only return to Malaysia once he is healthy

Kenmark Industrial Co (M) Bhd (7030) said its boss and major shareholder, who was missing as the group’s fortunes took a rapid turn for the worse, is sick in China.

In a statement sent to Bursa Malaysia through the company’s secretary yesterday, Hwang Ding Kuo@James Hwang said he was taken ill in China on May 24 and was in a delirious state.

“It was only yesterday (Tuesday) I regained full consciousness but am still weak to travel,” he said. He did not identify the nature of the sickness nor did he say when he expects to be well.

Hwang will only return to Malaysia once he is healthy.

Hwang also said he could not be reached by telephone as all calls had been barred by family members.

However, he said a friendly party has bought a substantial stake in the company and new appointment of directors will be made, including two executive directors to manage the current situation.

Hwang did not give details of the deal.

“I wish to state I am still the managing director of Kenmark and will work together with the new shareholder to try and resolve all outstanding issues caused by my sudden absence,” Hwang said.

He also did not state the current whereabouts of two other Taiwanese executive directors Chang Chin-Chuan and Chen Wen-Ling who were also said to be missing.

The new directors to be appointed are Ho Soo Woon, Ahmed Azhar Abdullah, Woon Wai En and Abdul Gani Yusof.

They will also review the company’s situation in Vietnam.

“I have spoken to Ho to have him discuss with Bursa Securities for a time extension to announce the fourth quarter results and appoint a special auditor,” Hwang said.

Over on the stock market, Kenmark’s shares were suspended at 4.43pm yesterday and they will remain so indefinitely, according to Bursa Malaysia.

Before the suspension, its shares were among the most active when it almost doubled to 11.5 sen from 6 sen previously.

Since news broke that Hwang went missing, Kenmark lost as much as RM140 million in stock market value in a matter of days while more than 400 of its workers were uncertain about their future.

Even the Securities Commission will investigate the furniture maker, while Bursa Malaysia directed Kenmark to appoint a special auditor to probe its finances.

Kenmark’s shocking story started on May 31 when its shares tumbled 68 per cent, leading to a query from Bursa Malaysia. The group said that its two independent directors could not contact Hwang while key executives have quit.

It also cannot issue the fourth quarter results for the period to March 31 2010.

The independent directors were told by former executives that all of its operations have stopped while two banks demanded some RM73 million of their money back.

To make matters worse, it immediately became a PN17 company, a label of financially troubled firms on Bursa Malaysia.

Meanwhile, Kenmark’s external company secretary Leong Oi Wah when contacted confirmed the independent directors will still meet with the company’s receiver, PricewaterhouseCoopers, as planned on Friday to determine the actual debt of the company.

Related Posts:

• Kenmark update : SC freezes Ishak’s gain
• MK Land profit up and new CEO
• Bursa fined Missing Kenmark Directors
• Kenmark to suspend on August 9, 2010
• Kenmark under receivership, share plunged 68%

IJM Plantations Bhd CEO and managing director Velayuthan Tan has retired from his positions.

A filing with Bursa Malaysia showed that he resigned as executive director on May 22.

IJM said in separate announcements that Joseph Tek Choon Yee has been re-designated CEO from COO and executive director while Purushothaman Kumaran has been appointed executive director.

Related Posts:

• MK Land profit up and new CEO
• Kenmark CEO ill in China
• Sime cost overrun, CEO steps down
• Mustapha Kamal-related company buys land from MK for RM150m