TRC expects contribution from property to increase to 20-30% in two years time

KUALA LUMPUR (May 24): Construction company TRC Synergy Bhd (TRC Synergy) expects contribution from its property segment to increase to between 20% to 30% of the total revenue in two year's time.

Currently, about 90% of the revenue comes from the construction segment, while its development arm TRC Land Sdn Bhd contributes 10% from the group’s revenue.

According to Datuk Abdul Aziz Mohamad, the executive director of TRC Synergy, the company is at its final stage of finalising its Ara Damansara mixed development which consists of service apartments, hotel, office block and retail mall. It is at Station 2 LRT Ara Damansara and a joint development with Prasarana Malaysia Bhd (Prasarana).

“We are at this final stages of finalising the Ara Damansara development by this year and the launching of the project in the first quarter of next year. The expected gross development value (GDV) of the development is about RM1 billion,” said Abdul Aziz.

Meanwhile, TRC chairman General (Rtd) Tan Sri  Mohd Shahrom Nordin said the company delivered a reasonable and consistent performance, despite the challenging economic environment last year.

"This is largely due to the Group’s strength and market position in the construction industry. Moving forward, we will beef up our property division and we hope our Ara Damansara development will propel for our stronger property division," he said.

On the Group’s projects in Sarawak, Abdul Aziz said the company has already been shortlisted for the Pan-Borneo highway projects, with each of the package valued at about RM1.4 billion to RM1.5 billion.

“With a vast experience of about 16 years in Sarawak, TRC will stand a chance to win more projects in Sarawak,” said TRC managing director Tan Sri Sufri Mohd Zin.

As at April 20, 2016, its on-going projects is valued at RM2.86 billion, where its unbilled amount stands at RM1.08 billion.

To-date, TRC Synergy had completed projects in excess of RM4 billion. The Group’s revenue for period ending Dec 31, 2015 recorded at RM767.9 million, with a gross profit of RM50 million; while its after tax profit is RM30.8 million, mainly due to the foreign exchange gain.

“For 2016, almost all major projects by TRC will be completed by second quarter of the year. Projects involved are MRT Sungai Buloh Depot, MRT 1 Stations in Sungai Buloh and Kelana Jaya LRT,” Abdul Aziz added.

TRC Synergy is targeting to sustain the revenue and profit of the company for the financial year 2016 according to Abdul Aziz.

“At Trans Recourses Corporation Sdn Bhd level, we are pleased to note that our revenue has surpassed our last year’s target of RM700 million. All projects are successfully completed within the contract’s time frame. Going forward, we are bullish to secure more projects from our major clients, such as Prasarana and MRT Corp for the next LRT line 3 and MRT Line 2,” Sufri said.

As of noon market, TRC Synergy edged up by 1.09% to 46.5 sen, with 176,000 shares exchanging hands for a market capitalization of RM223.4 million. -- theedgemarkets.com

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