Thursday, Sep 08, 2005
MARC has affirmed Guthrie Property Development Holding Berhad’s (GPDH) rating of RM750 million Islamic Medium-Term Notes programme at AA-ID (double A minus, Islamic Debt). The rating reflects GPDH’s reputable position as a leading property developer in the country and its sound financial profile. Other positive rating factors include GPDH’s vast land holding and its commendable track record of quality and timely completion of developments. Moderating the rating is the inherent cyclicality of the domestic property industry.
GPDH, a subsidiary of Kumpulan Guthrie Berhad (Guthrie), is principally involved in property development activities. Amongst its major on-going developments are Bukit Jelutong (BJ), Bukit Subang, Denai Alam (formerly known as Bukit Subang 2) and Sungai Kapar Indah. The impressive take-up rates of its past launches are a testament of GPDH’s unique developments which incorporate new lifestyle concept attractive to all income levels. In the near-to-medium-term, GPDH’s development thrust will be on the vast tract of plantation land along the Guthrie Corridor Expressway.
Revenue continued on an upward trend, reaching RM561.2 million at the end of Dec 2004 on the back of increased sales in its BJ development. Moving forward, GPDH has forecasted strong revenue growth for the next five years driven mainly by the BJ and Denai Alam developments. Operating profit margin consistently hovered above the industry figure, averaging slightly over 20% for the five-year period.
Upon the drawdown of the first two tranches of the Islamic Medium-Term Notes (MTN) programme amounting to RM400 million, GPDH’s debt equity ratio increased to 0.8x. Debt-equity ratio is capped at 1.1 times under the issue structure. MARC notes that at present, the Islamic MTN forms GPDH’s only borrowings. Financial flexibility is derived from the Group’s holding of large tracts of unencumbered land; and its membership of the Guthrie group; one of the leading plantation companies in the country.
GPDH, a subsidiary of Kumpulan Guthrie Berhad (Guthrie), is principally involved in property development activities. Amongst its major on-going developments are Bukit Jelutong (BJ), Bukit Subang, Denai Alam (formerly known as Bukit Subang 2) and Sungai Kapar Indah. The impressive take-up rates of its past launches are a testament of GPDH’s unique developments which incorporate new lifestyle concept attractive to all income levels. In the near-to-medium-term, GPDH’s development thrust will be on the vast tract of plantation land along the Guthrie Corridor Expressway.
Revenue continued on an upward trend, reaching RM561.2 million at the end of Dec 2004 on the back of increased sales in its BJ development. Moving forward, GPDH has forecasted strong revenue growth for the next five years driven mainly by the BJ and Denai Alam developments. Operating profit margin consistently hovered above the industry figure, averaging slightly over 20% for the five-year period.
Upon the drawdown of the first two tranches of the Islamic Medium-Term Notes (MTN) programme amounting to RM400 million, GPDH’s debt equity ratio increased to 0.8x. Debt-equity ratio is capped at 1.1 times under the issue structure. MARC notes that at present, the Islamic MTN forms GPDH’s only borrowings. Financial flexibility is derived from the Group’s holding of large tracts of unencumbered land; and its membership of the Guthrie group; one of the leading plantation companies in the country.