PETALING JAYA: Oriental Interest Bhd
(OIB) will be taking a long term view in maintaining its financial strength.
Chairman Tunku Mohamad Zulkifli Osman said this strategy will help the company to cope with and recover from any unexpected events and ensure sustainable returns to its shareholders.
“The group has a sizable forward sales position with a value of about RM720mil, going into the financial year ending Aug 31, 2024 (FY24) for which the board is hopeful that it will serve as a platform for continued growth.
“As such, the group anticipates a consistent quarter-on-quarter improvement in revenue recognition, driven by the accelerated pace of our construction progress and multiple projects nearing completion,” he said in the company’s annual report.
On the macro front, Tunku Mohamad said the prospect of the property development sector is expected to fare reasonably well.
“Bank Negara’s decision to maintain the overnight policy rate has brought renewed confidence to the real estate market with a broader positive impact on the overall economy.
“Further, continued government support on prevailing policies and implementation of strategies, projects and initiatives under the 12th Malaysia Plan are also positive impetus.”
He emphasised that the launch of rail and road network infrastructure would help to stimulate economic activities and growth in the property market along its routes.
“The announcements of more allocations to assist with housing for the rakyat, such as an increase in the Housing Credit Guarantee Scheme of up to RM10bil to benefit up to 40,000 borrowers, would go far to increase homeownership, particularly for gig economy workers and those without monthly income statements.”
Tunku Mohamad said the group will capitalise on these initiatives to launch projects in partnership with Rumah Makmur Kedah, Rumah Idaman Selangor and Perumahan Penjawat Awam Malaysia with attractive packages for home buyers.
“We see demand resilience and even growth, given our focus on affordably priced housing in strategic locations and the fact that a significant portion of our buyers are first-time homeowners.
“In view of the outlook and the group’s strategic plan, the board, together with the management and staff, are optimistic to deliver yet another positive performance for FY24.”
Tunku Mohamad said OIB remains in a healthy financial position with total assets of RM1.5bil and cash reserves (including short term investments) of about RM76.7mil in FY23
“OIB Group is well positioned to weather current conditions.
“Our market benefits from strong underlying customer demand for new affordably priced yet well designed and functional homes in strategic locations.
“Notwithstanding, our innate understanding of our market and the needs of end-purchasers mean we continue to see a strong level of interest in our homes.
“We remain optimistic that medium to long term fundamentals of our business remain very attractive,” he said.
For the first quarter ended Nov 30, 2023, OIB’s net profit rose to RM15.85mil from RM11.18mil in the previous corresponding period, while revenue grew to RM125.83mil from RM89.58mil a year earlier.
