Mont Kiara | Ireka Projects

[rizalhakim]

Ireka to build on i-Zen brand in Vietnam
By LAW KAI CHOW


IREKA Corp Bhd plans to aggressively grow the i-Zen brand for its overseas property development, especially in Vietnam, says executive director Lai Voon Hon.

“The Vietnamese market offers vast opportunities for the i-Zen brand, as the country has a young and educated population, strong foreign direct investment and a proactive government that promotes changes and liberalisation,” he told StarBiz.

He added that that the group was targeting the upper middle income segment in Vietnam.

i-Zen is an embodiment of quality products, contemporary lifestyle, high security, continued relationship with buyers, after-sales services and property management services.

Ireka’s property development in Vietnam is via its associate Aseana Properties Ltd. Currently, Aseana has seven projects in Malaysia and three in Vietnam.

Aseana’s joint ventures in Vietnam have an estimated gross development value of US$1.9bil. Its upcoming projects include Queen’s Place and Hi-Tech Healthcare Park, both in Ho Chi Minh City.

Queen’s Place sits on two acres and is a US$200mil joint-venture project in which Aseana owns 65%. It comprises residential units, offices and a retail mall.

Hi-Tech Healthcare Park is a US$420mil mixed commercial and residential development on 93 acres. It is 51%-owned by Aseana.

Lai said Mont’ Kiara had provided Ireka with the “branding showcase” and expertise to promote i-Zen outside Malaysia.

“The i-Zen brand has helped Ireka differentiate itself from others. This will not only benefit us during property launches but also allow buyers to command a premium resale value.

[rizalhakim]

Seni MK

Originally Posted by mercuri

25.11.2008

Originally Posted by mercuri

[rizalhakim]

Izen @ Tiffani

Originally Posted by mercuri

looking good on 27.11.2008

[rizalhakim]

Seni MK

Originally Posted by mercuri

27.11.2008

Originally Posted by mercuri

another pic of "courtyard"

[rizalhakim]

I-zen @ Tiffani
http://investorsanonymous.blogspot.com

image hosted on flickr


image hosted on flickr


image hosted on flickr

[rizalhakim]

Izen@Tiffaini

Originally Posted by mercuri

1.1.2009

[rizalhakim]

1MK

Originally Posted by mercuri

1.1.2009

Originally Posted by mercuri

more pics

[rizalhakim]

Worst likely over for Ireka Corp

Email us your feedback at fd@bizedge.com




Ireka Corp's (66 sen) recently released 2Q FY March 2009 (July-September 2008) results showed a small loss due to sharply higher building material and commodity costs. The company's core construction division had earlier turned around in 1QFY09 after earlier years of losses.

On a positive note, we think the worst may be over for Ireka. Commodity and building material prices have since slumped sharply, and the company's order book is now comprised largely of newer projects, with more favourable pricing structures.


Weak 2QFY09 results
For 2QFY09, Ireka posted revenue of RM88.8 million, down 3.4% year-on-year (y-o-y) from RM91.9 million a year ago. However, it reported a pre-tax loss of RM4.5 million, compared with a pre-tax profit of RM5.3 million a year ago, and RM3.8 million in 1QFY09. Net losses for the quarter totalled RM4.1 million after a tax writeback.

Cumulative revenue for 1HFY09 fell 5% y-o-y to RM151.7 million. Pre-tax and net losses totalled RM700,000 and RM1.2 million, respectively, for the six-month period.

The losses in 2QFY09 were due to the surge in building material and commodity prices throughout much of this year, which adversely affected construction margins.

Prices of building materials such as sand, granite and cement were up about 20%-30% for the year, with steel rising much more. Commodity-driven prices, such as steel, peaked in July 2008 and started falling sharply from September-October 2008 onwards as the global financial crisis became more severe.

The price of steel bars, for instance, rose from RM2,200 to RM4,000 per tonne from January-July 2008, before easing off in the last two to three months. Prices fell to RM2,800 per tonne in September and have been trending down before a sharp drop to below RM2,000 per tonne.

For Ireka, we understand the severe margin contraction in 2QFY09 was also compounded by the fact that the project that contributed most to the quarter was One Mont'Kiara, opposite Plaza Mont'Kiara. As this project was launched in 2006, contract pricing was based on old cost structures.

Going forward, we expect margins to improve given that steel and other commodity prices have eased significantly since September-October 2008. Also, more of Ireka's newer projects should get underway, particularly Seni Mont'Kiara, which have more favourable pricing structures.

Gearing fell slightly in the latest quarter, with net debt falling from RM80.6 million to RM69.1 million and gearing at a comfortable 29%.

Large order book to underpin earnings
Despite the prevailing global economic uncertainties and the losses in 2QFY09, the outlook for Ireka is actually looking better.

The worst of the building material and commodity price increases are well behind us. As prices of most commodity-related products, particularly steel, have fallen sharply since September-October 2008, margins should improve going forward.

Ireka's revenue over the next few years will be supported by a very large order book totalling RM898.7 million as at Sept 30, 2008. This increased from RM760 million in June 2008 and is equivalent to a hefty 12 times its market capitalisation of just RM75 million.

The product mix of its order book will improve going forward and this will also boost margins. As older projects are being progressively completed, the order book is being replenished by newer and better-margin ones, priced when building material prices were much higher.

Most notable is the RM539.8 million Seni Mont'Kiara contract secured on July 1, 2008, of which RM486.1 million remains outstanding. This accounts for a sizable 54% of the order book, and was based on more current and higher cost pricing structures.

Another recent contract is the RM195 million Sandakan Harbour project, awarded on Sept 2, 2008. The outstanding value is RM188 million. Together, the two newer projects account for RM674.1 million or 75% of the total order book.

Good business model in place
Ireka has a good business model and corporate structure. The company has managed to de-gear itself well ahead of the global financial crisis, and fetched peak prices for all its assets. The construction arm's RM899 million order book will keep it busy for the next two to three years. The squeeze on margins should be largely over.

Moreover, all its construction jobs are now "in-house", ie for projects undertaken by its London listed property arm, Aseana Properties Ltd (ASPL). Therefore, there should be almost negligible default risk, which is commonly faced by the construction industry during a major slowdown.

With its new corporate structure in place, Ireka has a steady stream of sustainable earnings, balanced with cyclical construction profits.

From ASPL, Ireka will earn stable annual management fees of 2% from managing its asset base. ASPL's NAV as at Sept 30, 2008 stood at US$227 million. It will also receive dividends and upside from performance fees, although that is probably less likely in the near term.

Through ASPL it also has access to a large war chest for future investments in Malaysia and Vietnam, giving Ireka a far larger scale of operations than otherwise possible due to its small size.

An asset-light balance sheet also insulates the company from the current property downturn. As such, its balance sheet should remain reasonably healthy, with funding needed only for ongoing construction activities. ASPL, meanwhile, still had US$64 million (RM224 million) cash in September 2008.

Ireka's construction's order book is likely to grow further given the pipeline of ASPL's new projects over the next year. In 1H2009, ASPL plans to launch the US$257 million KL Sentral project, comprising two office towers and a hotel within KL Sentral, Kuala Lumpur.

In Ho Chi Minh City, Vietnam, ASPL plans to undertake two joint-venture projects within the next year or so — Queen's Place and Hi-Tech Healthcare Park. Queen's Place is a US$200 million 0.8ha mixed development project in the commercial heart of the city, in District 4. Hi-Tech Healthcare Park is a mixed commercial and residential project on 37.2ha, with total GDV of US$770 million.

Valuations remain attractive
We are reducing our net profit forecast for FY09 by 37% from RM17.9 million to RM11.3 million, or 9.9 sen per share, to account for the 2QFY09 losses. For FY10, we are reducing our forecast marginally — by 10% from RM21.6 million to RM19.4 million, or 17 sen per share.

Ireka's valuations remain attractive. At 66 sen, its shares are trading at P/Es of just 6.6 and 3.9 times FY09-10 earnings, and a significant 68% below its latest book value of RM2.07. We maintain our buy recommendation.

However, we also note that ASPL's share price in London has fallen substantially - and this may cap a recovery of Ireka's share price in the medium term.

ASPL's share price has fallen to just 23 cents — from an IPO price of US$1 — and is currently trading 75% below its NAV of 90.9 cents as at September 2008. Its shares are grossly undervalued, but unfortunately reflect the weak state of the UK stock market and appetite for property companies.

Ireka had earlier set a dividend policy at 40% of net profits, although this could change if operating conditions turn more challenging.

For FY09-10, we expect net dividends of four sen and 6.5 sen respectively. This will provide investors with high net dividend yields of 6.1% and 9.8% respectively.

[rizalhakim]

Seni MK





http://investorsanonymous.blogspot.com/

[rizalhakim]

Seni MK
dis is huge!!!

Originally Posted by mercuri

12.2.2009

Originally Posted by mercuri

Originally Posted by mercuri

more pics..

[rizalhakim]

Izen Tiffani







http://investorsanonymous.blogspot.com/

[rizalhakim]

1 MK





http://investorsanonymous.blogspot.com/

[rizalhakim]

Ireka unit ISO certified


KUALA LUMPUR: Ireka Corp Bhd’s property development unit, Ireka Development Management Sdn Bhd (IDM), has received the MS ISO 9001:2000 certification for quality management system from Sirim QAS International and UKAS Quality Management.

The company’s president and chief executive officer Lai Voon Hon said the quality certification was a further testimony to Ireka’s commitment to develop properties of international standards.

IDM is the exclusive development manager for London-listed property developer Aseana Properties Ltd.

Currently, the company is managing four ongoing development projects in Malaysia, consisting of luxury condominiums, integrated commercial and offices and an urban development project.

In a statement, the company said its maiden project for the development of hotel and office towers in KL Sentral, undertaken by Aseana Properties and Malaysian Resources Corp Bhd, was expected to kick off in the first half of the year.

Meanwhile, the company has also received investment licences for two of its upcoming projects in Vietnam.

The MS ISO 9001:2000 quality certification is applicable for six core business processes, namely, business planning, pre-development, sales and marketing, sales and administration, project development and post-development.

[rizalhakim]

seni MK

Originally Posted by mercuri

23.3.2009

Originally Posted by mercuri

[James Foong]

1


2

[James Foong]

1


2

[rizalhakim]

seni MK

[rizalhakim]

Tiffani by i-ZEN

[rizalhakim]

1mk

[James Foong]