KUALA LUMPUR (April 27): Property developer Gold Li Holdings Bhd, which mainly develops landed homes, is venturing into high-rise development in Muar — an area that rarely sees such projects.
The city, which is located about a two-hour drive from Johor Bahru, has few new apartment developments, making it an “underserved” market segment, Gold Li chief financial officer Tey Bock Heng told reporters after the launching of the company’s listing prospectus on Monday.
Gold Li is set to launch the 500-unit project with a gross development value of RM400 million in 2027, and “we are very comfortable with the market simply because it is underserved”, he said.
“For the longest time, there has been no new project launch,” Tey said. “After such a long period, there is pent-up demand from buyers who are looking for apartment or condominium living.”
The changes in lifestyle preferences, particularly among younger buyers, are also driving interest in high-rise living even in secondary towns, he added.
Founded in 1999, Gold Li is mainly focused on landed residential developments and has completed 110 projects across Johor, mainly in Muar, Tangkak and Batu Pahat. The group also operates as its own main contractor.
Gold Li has 13 ongoing projects and 28 planned developments, with a combined gross development value of about RM855 million. The company also still has about 47.3 acres of land bank across Johor.
The initial public offering will raise RM15.21 million, of which more than 70% of these proceeds is allocated to partly fund its three ongoing projects and one of the planned developments. The rest will be used to defray listing expenses.
For the financial year ended Jan 31, 2025 (FY2025) Gold Li recorded a net profit of RM7.84 million on revenue of RM65.03 million, translating into a gross profit margin of 26.5% and a net profit margin of 12.1%.
Upon listing, the group is expected to have a market capitalisation of RM78 million with a price-to-earnings ratio of 10 times based on the FY2025 earnings. The group does not have any dividend policy.