MITRAJAYA HOLDINGS BERHAD

 23^rd AGM (3^rd June 2016)

No. of attendance = 110

Highlights

Ø  FY16 Outlook and Target

o   Targeted Turnover – MYR1.1b to MYR1.2b

Ø  Healthcare

o   Disposal of 51% stake in OPTIMAX is expected to complete by next two months

o   Cost of buying this stake is MYR3.6m and MITRA disposed it with MYR5.1m, gain on disposal will be MYR1.5m

o   MITRA had acquired OPTIMAX for approximately 15 to 16 years, but the performance is limited. So, MITRA decided to dispose it and allocate the resources to better investment

Ø   South Africa Investment

o   In FY15, MITRA had acquired a new piece of approximately 80 hectares land with 40m Rand

o   Awaiting approval from development to proceed to the next stage

o   In the process of getting approval to set up a medical centre and neighborhood mall

o   The development is expected to complete in next 2 to 3 years

Ø  Local Property Development

o   Wangsa 9 Residency has a GDV of approximately MYR800m

o   MITRA is looking possibility for new development

o   The loss in FY15Q4 in this segment was due to internal charge of interest loss in holding companies

o   The property is on full swing in construction now, the take up rate and revenue recognition will start to pick up

o   Current take up rate on Wangsa 9 Residency’s phase 1 and phase 2 are 80% and 40% respectively

o   After completion in year 2018, it is expected to have good demand

Ø  Construction

o   Latest book order – MYR1.69b

o   Currently focus on tendering at KLANG infrastructure project, Johor rapid project and Sarawak Pan Borneo Highway

o   Had tendered in all the 8 packages in Pan Borneo Highway and expected to have result in next 2 to 3 months. The packages are worth more than MYR1b

o   In term of success rate, management don’t have a magic figure to estimate and they mentioned MITRA have sufficient order books to make profit to shareholders

o   MITRA is focusing on quality project rather than quantity low margin project.

Ø  Currency Risk

o   The currency loss in FY15 was due to South Africa Rand had become weak

o   Its acquired land was paid by cash 40m Rand

o   In FY16, MITRA’s Rand account is expected to have 100m Rand which approximately MYR30m if there is no acquisition

Ø  Negative Cash Flow

o   MITRA was making money in FY15 but its cash flow appeared to be negative

o   It was due to short term borrowing for working capitals as MITRA did not raise fund through right issues

o   Besides, the clients normally take 2 to 3 months to pay MITRA

o   There is a retention money of 5% for every projects

Ø  Complaint by one Shareholder

o   The number of attended shareholders is 110 people, but the prepared Annual Reports and the prepared chairs only have 100 and 80 respectively

o   Besides, there is no presentation slide prepared for shareholders for visualize