KUALA LUMPUR : NCTGROUP is scaling up its property development segment to drive earnings in a bid to list on Bursa Malaysia within three years. The construction and property developer aims to register RM400 million in revenue this year, almost a twofold jump from the RM250 million achieved last year. In terms of net profit contribution, it expects 60 per cent to come from property development and the rest from construction, according to its founder and group managing director Yap Ngan Choy . The company currently has RM1 billion worth of construction contracts at hand, of which half are works on property development projects by SP Setia Bhd , Putrajaya Holdings Sdn Bhd and the Urban Wellbeing, Housing and Local Government Ministry . The plan is to maintain the RM1 billion level annually or increase it gradually when necessary, Yap told Business Times. On property development, NCT has two projects worth a combined RM2 billion . They are Ion d'Elemen in Genting Highlands and Salak Perdana, which is located between Putrajaya and Kuala Lumpur International Airport in Sepang . Yap said the bulk of the group's earnings has come from the construction segment but as margins are shrinking, NCT has decided to expand its activities in property development. "We can still expect margins of between 25 and 30 per cent for property development, which is why we want to expand in this area. Margins for construction are shrinking because of higher prices of building materials and labour shortage. It is not feasible to focus on construction alone now," he said in an interview recently. NCT was formed in 1985 as a tiling specialist. It moved to construction in 1999 to take advantage of the booming industry. The group later ventured into property development in 2006 to diversify its earnings.
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