KUALA LUMPUR: Keladi Maju Bhd announced to Bursa Malaysia that former IJM Corp Bhd chief executive officer (CEO) Datuk Teh Kean Ming has been appointed as the property developer’s managing director (MD), effective yesterday.

In a separate filing with the stock exchange, Keladi Maju (fundamental: 1.65; valuation: 2.4) said its former managing director Datuk Chuah Chin Ah has been redesignated as executive deputy chairman.

Teh joined the board of IJM Corp as an alternate director on Sept 1, 2005, and was the deputy CEO and deputy MD of IJM Corp from July 1, 2008 to Dec 31, 2010. He was then appointed CEO and MD of the company on Jan 1, 2011 and retired on April 5, 2015.

Chuah, on the other hand, is one of the founders of Keladi Maju and has been the company’s MD since 1986.

Keladi Maju is currently a rather big landlord in Segambut, Kuala Lumpur. The company’s acquisition of a prime 13.8-acre (5.58ha) parcel near Jalan Segambut, on which sanitary ware maker Goh Ban Huat Bhd’s (GBH) plant is located, has granted Kedah-based Keladi Maju an instant entry into a sought-after area. GBH sold the tract to Keladi Maju for RM192.4 million cash.

Keladi Maju is now seen as the property arm of tycoon Tan Sri Robert Tan Hua Choon, who holds 16.8% in the company. Meanwhile, Tan controls 10.23% in GBH.

It is worth noting that FCW Holdings Bhd, in which Tan also holds 25.35% equity interest, owns a few parcels next to Keladi Maju’s newly acquired land. Interestingly, FCW also bought the parcels from GBH in 2007.

FCW has entered into a 50:50 joint venture with IJM Land Bhd to develop 16.58 acres with a gross development value of RM1.3 billion. For Keladi Maju, its parcel is estimated to have a gross development value of RM1 billion, if not more.

The company’s net profit leaped three times to RM8.79 million in the first quarter of financial year 2016 (1QFY16) from RM2.92 million in 1QFY15, while revenue ballooned to RM24.7 million from RM7.93 million, on improved sales and construction progress billings from its property development division.

In FY15, Keladi Maju (fundamental: 1.65; valuation: 2.4) recorded a net profit of RM18.53 million, down 13.65% year-on-year (y-o-y) from RM21.46 million, while revenue was at RM52.55 million, down 11% y-o-y from RM58.85 million.

Keladi Maju rose half a sen or 1.72% to 29.5 sen yesterday, giving it a market capitalisation of RM219.91 million.

This article first appeared in The Edge Financial Daily, on July 02, 2015.