(KUALA LUMPUR) Sunway Holdings Bhd expects a record net profit this year, driven by new business and healthier margins from all its five core divisions, Malaysia's Business Times (MBT) reported managing director Yau Kok Seng as saying on Monday.

These include construction, property development, trading and manufacturing, quarries, and building materials.

The construction division, which has RM3 billion (S$1.3 billion) worth of jobs in hand, is bidding for more infrastructure and building projects worth RM16 billion in Malaysia, Abu Dhabi, India and Singapore.

'We hope to get minimum RM1 billion worth of new contracts this year, maintaining our order book at RM3 billion,' Mr Yau told reporters after a shareholders' meeting in Bandar Sunway, Selangor.

Sunway, controlled by founder Jeffrey Cheah, has prequalified for projects like the light rail transit (LRT) line extension in the Klang Valley; the new low-cost carrier terminal in Sepang; and the Kelau dam, part of the Pahang-Selangor raw water transfer project.

Mr Yau said Sunway's property development unit, SunwayMas Sdn Bhd, will launch five projects, including one in Singapore, from July to December worth RM600 million.

It has six projects worth RM1.1 billion and 182 hectares of undeveloped land with potential to generate a gross development value of RM3.3 billion, MBT reported.

'With new construction jobs, property launches and unbilled sales of RM515 million, and increasing trading, manufacturing and quarry activities, we hope to exceed last year's earnings,' Mr Yau said.

Sunway reported a strong first-quarter net profit of RM40 million, which is 2.5 times higher than in the same quarter last year.

'We have very clear strategy on how we want to build our businesses. The geographic diversification has helped us grow all the divisions,' Mr Yau said.

'To expand further, we will continue to recruit the right talent and manage the foreign exchange rates.'

Sunway, which has RM170 million in its reserves, has no immediate plans to do a rights issue, the MD said.

He said Sunway would manage its cash flow, generated from all its operations, to expand. 'We hope to come up with a consistent dividend policy from next year. We are looking to distribute 20 per cent of our profits to shareholders,' Mr Yau added.

Source : The Business Times © Singapore Press Holdings Ltd. Reprinted with permission.