Ocr Group Berhad

A Comeback Story for OCR Group Berhad (7071)

In Q4 FY2024, the company bounced back into profitability, recording a profit before tax of RM3.79 million, a huge improvement from the loss of RM19.95 million in the same quarter last year. This shift shows that OCR’s effective cost management and asset optimization strategies are paying off.

While revenue came in at RM3.98 million, lower than the previous year due to the completion of key construction projects, the company has been able to capitalize on fair value gains from investment properties worth RM11.37 million. By keeping expenses in check and focusing on high-value assets, OCR has managed to strengthen its bottom line and set itself up for a more sustainable future.

On the financial front, things are looking stable. Total assets have grown to RM680.2 million from RM629.97 million, and the company’s cash position has improved to RM29.9 million, boosted by a successful rights issue that raised RM46.77 million. While liabilities remain at RM380.9 million, OCR is actively managing its debts, ensuring that its finances remain solid as it moves forward.

Looking ahead, there’s a lot to be excited about. OCR has an impressive RM2 billion Gross Development Value (GDV) pipeline in Klang Valley and Kuantan, putting it in a strong position to meet market demand for modern and sustainable properties. With its focus on efficiency and smart financial planning, OCR is well-positioned for steady earnings growth in the coming quarters.

With profitability back on track and a promising growth strategy in place, OCR Group Berhad is shaping up to be an interesting investment opportunity in Malaysia’s property sector. As the company continues to fine-tune its operations and roll out new projects, the future looks bright for sustained growth and value creation.

$OCR / 7071 (OCR GROUP BERHAD)

KUALA LUMPUR: OCR Group Bhd says its renounceable rights issue with free warrants was oversubscribed by 101.1 per cent, raising RM46.8 million in gross proceeds.  

© New Straits Times Press (M) Bhd

KUALA LUMPUR: OCR Group Bhd announced that its renounceable rights issue with free warrants reached a 101.1% subscription rate, raising gross proceeds of RM46.8 mil.

OCR Group Berhad Building Momentum with Successful Rights Issue and Promising Property Prospects Ahead

OCR Group Berhad (“OCR”), an integrated property developer, recently raised RM46.8 million through a highly successful renounceable rights issue with free warrants, achieving an oversubscription rate of 101.1%. This response from the market speaks volumes about investor confidence in OCR's growth trajectory and development plans.

The rights issue, priced at RM0.035 per share, was offered with two free detachable warrants for every three shares held, leading to substantial interest, with total applications reaching 1.35 billion shares valued at RM47.3 million.

This strong show of investor support reinforces OCR’s strategy to accelerate key property projects. As the company steers ahead, backed by solid capital, it positions itself favourably to tap into Malaysia’s evolving property market dynamics.

With the Malaysian property sector on the path to recovery, supported by government initiatives, improving consumer sentiment, and infrastructure developments, OCR is well-placed to seize growth opportunities. The raised funds will propel the development of the company’s key projects, including Kyra in Shah Alam, OCR Templer in Rawang, and the Vertex Kuantan City Centre—all of which are central to OCR’s property portfolio, carrying a combined gross development value (GDV) of over RM2 billion.

The company has allocated 80.3% of the raised funds to fast-track these key property developments. Meanwhile, 10.7% of the proceeds will be used to improve OCR’s financial standing by repaying RM5 million in existing borrowings.

This move not only enhances the company’s balance sheet but also allows for greater financial flexibility, ensuring that OCR can continue to drive its growth strategy without being overly burdened by debt.

The remaining 9% of the proceeds will be allocated to working capital (6.4%) and to cover the costs associated with the corporate exercise (2.6%). By shoring up its financial resources and ensuring sufficient operational liquidity, OCR is better positioned to deliver on its projects and meet the demands of an increasingly competitive property market.

Alongside the rights shares, OCR issued free warrants which provide an additional layer of potential capital. The warrants, exercisable over the next three years, could generate an additional RM46.8 million in gross proceeds if fully exercised. These funds will be earmarked to support future working capital requirements, helping OCR to finance day-to-day operations and manage staff costs efficiently as it scales up its project developments.

This strategic foresight in raising capital through multiple avenues reflects OCR’s proactive approach to ensuring a stable and secure financial future, providing a cushion for its ongoing property developments and allowing for continued investment in new opportunities.

OCR’s Kyra project in Shah Alam, for instance, is poised to benefit from the city’s increasing popularity among homebuyers looking for affordable housing options within proximity to Kuala Lumpur. Similarly, the Vertex Kuantan City Centre in Kuantan is expected to attract buyers seeking modern living spaces and commercial properties, particularly with the growing industrial activity in the region due to projects like the Malaysia-China Kuantan Industrial Park.

OCR’s successful rights issue, paired with its promising project pipeline and strategic financial management, sets the stage for sustained growth in Malaysia’s property market. With substantial capital raised, the company is accelerating the development of key projects that are expected to capture strong demand in high-growth areas. The company’s ability to attract investor confidence, evidenced by the oversubscription of its rights issue, highlights OCR’s resilience and potential in the property sector.

Now, OCR is trading at RM0.06 per share, which is steeply undervalued given the fresh funds the group had generated, as well as the strong pipeline of projects ahead. The current price of OCR poses a significant upside potential ahead for them.

$OCR / 7071 (OCR GROUP BERHAD)

OCR Berhad Reports Strong Recovery in Q2 FY2024

Integrated property developer OCR Berhad (OCR, 7071) has announced a remarkable set of results for the second quarter of the financial year 2024 (Q2 FY2024). The company achieved a revenue of approximately RM46.7 million and a profit before tax (PBT) of RM1.8 million for the quarter ended 30 June 2024.

The revenue for Q2 FY2024 saw a substantial increase of 42.2% year-on-year (YoY) and a 37.4% rise compared to the previous quarter. This growth was primarily driven by higher sales and accelerated progress on ongoing projects, including Isola KLCC and The Mate, Damansara Jaya, both of which are slated for completion in the second half of 2024. Additionally, a higher sales take-up rate for Stellar Damansara in the current quarter contributed significantly to the revenue boost.

OCR 's PBT also exhibited a robust performance, with a significant increase of 153.3% YoY and 108.1% quarter-on-quarter (QoQ). This impressive growth in PBT was mainly attributed to the aforementioned higher sales and accelerated project progress. Moreover, the company's gross profit also saw a dramatic improvement, rising by 105.1% YoY to approximately RM9.4 million, significantly contributing to the overall profitability.

On the other hands, the company's earnings per share (EPS) for both basic and diluted figures rose to 0.17 cents, a notable increase from 0.01 cents in Q2 FY2023, reflecting the company's solid financial performance and strong recovery.

Looking forward, OCR remains steadfast in its commitment to project delivery and completion, while also exploring new collaborations under its internal consolidation strategy. One of the key projects set to launch this financial year is Residensi Akasia, an affordable housing initiative under the Rumah Selangorku scheme, with a gross development value of RM287.1 million. This project is targeted for launch in the third quarter of 2024.

Despite maintaining a cautious outlook for the year, OCR Berhad anticipates a healthy recovery, driven by its strategic focus and continued project success.

$OCR / 7071 (OCR GROUP BERHAD)

MULTIPLE PROPOSALSOCR GROUP BERHAD ("OCR" OR THE "COMPANY")

(I) PROPOSED SETTLEMENT;
(II) PROPOSED RIGHTS ISSUE WITH WARRANTS;
(III) PROPOSED EXEMPTION 1; AND
(IV) PROPOSED EXEMPTION 2

(COLLECTIVELY REFERRED TO AS THE "PROPOSALS")

Technical Review–OCR Group Berhad

We had identified OCR Group Berhad as our next Trading BUY target, here’s WHY:

OCR has been riding on a significant uptrend since the breakthrough of key resistance level 7.0 sen in May 2024.
Both EMA/MA shows a very strong continued uptrend momentum, with fund flow indication (represented by red bars below) showing a positive sign ahead.
OCR is still well supported on 12.0 sen, which we believe is a test on the support level.
We think $OCR / 7071 (OCR GROUP BERHAD) is expected to challenge 13.5 sen and 15.0 sen in the short-term.

MULTIPLE PROPOSALSOCR GROUP BERHAD ("OCR" OR THE "COMPANY")

(I) PROPOSED SETTLEMENT;
(II) PROPOSED RIGHTS ISSUE WITH WARRANTS;
(III) PROPOSED EXEMPTION 1; AND
(IV) PROPOSED EXEMPTION 2

(COLLECTIVELY REFERRED TO AS THE "PROPOSALS")

General Meetings: Outcome of Meeting

CIRUCLAR TO SHAREHOLDERS IN RELATION TO (I) PROPOSED SETTLEMENT OF ADVANCES OWING BY STACK BUILDER SDN BHD, A 50.5%-OWNED SUBSIDIARY OF THE COMPANY, TO ONG KAH HOE ("OKH") AND TAN CHIN HOONG ("TCH") AMOUNTING TO RM43,296,795 TO BE SATISFIED ENTIRELY VIA THE ISSUANCE OF 618,525,646 NEW ORDINARY SHARES IN THE COMPANY ("OCR SHARES" OR "SHARES") AT THE ISSUE PRICE OF RM0.0700 PER SHARE ("PROPOSED SETTLEMENT"); (II) PROPOSED RENOUNCEABLE RIGHTS ISSUE OF UP TO 1,336,348,534 NEW SHARES ("RIGHTS SHARES") TOGETHER WITH UP TO 1,336,348,534 FREE DETACHABLE WARRANTS IN THE COMPANY (WARRANTS E) ON THE BASIS OF 2 RIGHTS SHARES TOGETHER WITH 2 WARRANTS E FOR EVERY 3 EXISTING SHARES HELD BY THE ENTITLED SHAREHOLDERS OF THE COMPANY ON AN ENTITLEMENT DATE TO BE DETERMINED ("PROPOSED RIGHTS ISSUE WITH WARRANTS"); (III) PROPOSED EXEMPTION UNDER SUBPARAGRAPH 4.08(1)(B) OF THE RULES ON TAKE-OVERS, MERGERS AND COMPULSORY ACQUISITIONS ISSUED BY THE SECURITIES COMMISSION MALAYSIA ("SC") ("RULES") TO OKH, TCH AND PERSONS ACTING IN CONCERT WITH THEM FROM THE OBLIGATION TO UNDERTAKE A MANDATORY TAKE-OVER OFFER FOR THE REMAINING OCR SHARES NOT ALREADY HELD BY THEM UPON THE COMPLETION OF THE PROPOSED SETTLEMENT ("PROPOSED EXEMPTION 1");AND (IV) PROPOSED EXEMPTION UNDER SUBPARAGRAPH 4.08(1)(B) OF THE RULES TO OKH AND PERSONS ACTING IN CONCERT WITH HIM FROM THE OBLIGATION TO UNDERTAKE A MANDATORY TAKE-OVER OFFER FOR THE REMAINING OCR SHARES NOT ALREADY HELD BY THEM UPON THE COMPLETION OF THE PROPOSED RIGHTS ISSUE WITH WARRANTS ("PROPOSED EXEMPTION 2") (THE PROPOSED EXEMPTION 1 AND THE PROPOSED EXEMPTION 2 SHALL COLLECTIVELY BE REFERRED TO AS THE "PROPOSED EXEMPTIONS") (THE PROPOSED SETTLEMENT, THE PROPOSED RIGHTS ISSUE WITH WARRANTS AND THE PROPOSED EXEMPTIONS SHALL COLLECTIVELY BE REFERRED TO AS THE "PROPOSALS")

Quarterly Analysis – OCR Group Berhad (7071)

OCR Group Berhad reported a revenue of RM34.0 million and a profit before tax (PBT) of RM0.86 million for the quarter ended 31 March 2024. This represents a slight decrease compared to the revenue of RM35.9 million and PBT of RM0.88 million in the same quarter of the previous year.

The decline in revenue is primarily due to the completion of a significant construction project in 2023, with no new construction projects commencing in the current financial year. However, this was offset by robust growth in the Property Development segment, which saw a 45% increase in revenue, driven by ongoing projects such as Isola KLCC and The Mate​​.

In terms of expenses, the cost of sales decreased from RM29.84 million in Q1 2023 to RM28.40 million in Q1 2024, reflecting the lower revenue from the construction segment. Other income increased from RM1.02 million to RM1.66 million, contributing positively to the overall profitability. Administrative expenses saw a slight increase from RM4.32 million to RM4.37 million, while finance costs rose from RM1.28 million to RM1.42 million, indicating higher interest expenses. Depreciation and amortisation increased slightly from RM0.56 million to RM0.60 million​​.

Despite these changes, the company’s total comprehensive income increased slightly from RM0.33 million to RM0.36 million, with fair value loss on equity instruments being a significant factor. Earnings per share for both basic and diluted remained at 0.07 sen, up from 0.01 sen in Q1 2023​​.

Looking ahead, Malaysia’s economy showed a 4.2% GDP growth in Q1 2024, driven by resilient domestic expenditure and robust external demand. The property development industry is expected to benefit from this economic stability, enhancing consumer confidence and increasing investment in real estate projects. OCR Group Berhad plans to maintain its focus on project delivery and completion while exploring new collaborations. A notable new project for FY2024 is Residensi Akasia, an affordable housing initiative under the Rumah Selangorku scheme, with a gross development value of RM287.3 million, targeted for Q3 2024​​.

In addition to their financial performance, OCR Group Berhad announced a series of corporate proposals on 13 December 2023 aimed at strengthening the company’s financial position and capital structure.

These proposals include a settlement of advances amounting to RM43.30 million owed by Stack Builder Sdn. Bhd., a 50.5%-owned subsidiary, to Ong Kah Hoe (OKH) and Tan Chin Hoong (TCH). This will be settled via the issuance of 618,525,646 new ordinary shares in OCR at an issue price of RM0.0700 per share. Additionally, a renounceable rights issue of up to 1,336,348,534 new shares along with up to 1,336,348,534 free detachable warrants has been proposed, based on 2 Rights Shares together with 2 Warrants E for every 3 existing shares held by entitled shareholders​​.

To conclude, OCR Group Berhad has demonstrated stable performance amidst the completion of significant projects and economic fluctuations. The shift in revenue composition towards property development indicates a strategic focus on long-term, sustainable growth. The Group's financial health remains robust, with a stable balance sheet and proactive management of operating and financing activities. Future prospects appear positive, supported by new projects and a favorable economic environment.

$OCR / 7071 (OCR GROUP BERHAD)

General Meetings: Notice of Meeting

Quarterly rpt on consolidated results for the financial period ended 31/03/2024 (Amended Announcement)

MULTIPLE PROPOSALSOCR GROUP BERHAD ("OCR" OR THE "COMPANY")

(I) PROPOSED SETTLEMENT;
(II) PROPOSED RIGHTS ISSUE WITH WARRANTS;
(III) PROPOSED EXEMPTION 1;
(IV) PROPOSED EXEMPTION 2; AND
(V) PROPOSED EXEMPTION 3

(COLLECTIVELY REFERRED TO AS THE "PROPOSALS")

General Meetings: Outcome of Meeting

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

PROVISION OF FINANCIAL ASSISTANCE

CIRCULAR TO SHAREHOLDERS IN RELATION TO THE PROPOSED NEW AND RENEWAL OF SHAREHOLDERS' MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE ("PROPOSED SHAREHOLDERS' MANDATE")

Annual Report & CG Report - 2023

OTHERSOCR GROUP BERHAD
- Proposed New and Renewal of Shareholders' Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature ("Proposed Shareholders' Mandate")

$OCR / 7071 (OCR GROUP BERHAD)

KUALA LUMPUR: OCR Group Bhd’s indirect subsidiary OCR Templer Sdn Bhd plans to develop a landed residential project on 7.44 hectares in Templer, Rawang, with an estimated gross development value (GDV) of RM313 million.

OTHERSOCR GROUP BERHAD ("OCR" or the "Company")
- Joint Venture Agreement between OCR Templer Sdn Bhd, an indirect subsidiary of the Company and Lecca Properties (M) Sdn Bhd

Change of Address

MATERIAL LITIGATIONOCR GROUP BERHAD ("OCR" or "the Company")
- Commencement of Arbitration Proceedings by O&C Makok Isola Sdn Bhd ("OCMI") against Jetson Construction Sdn Bhd ("JCSB")

Quarterly rpt on consolidated results for the financial period ended 31/12/2023

PROVISION OF FINANCIAL ASSISTANCE

Change in Remuneration Committee - MISS CHAN LIAN SEI

MULTIPLE PROPOSALSOCR GROUP BERHAD ("OCR" OR THE "COMPANY")

(I) PROPOSED SETTLEMENT;
(II) PROPOSED RIGHTS ISSUE WITH WARRANTS;
(III) PROPOSED EXEMPTION 1;
(IV) PROPOSED EXEMPTION 2; AND
(V) PROPOSED EXEMPTION 3

(COLLECTIVELY REFERRED TO AS THE "PROPOSALS")

MULTIPLE PROPOSALSOCR GROUP BERHAD ("OCR" OR THE "COMPANY")

(I) PROPOSED SETTLEMENT;
(II) PROPOSED RIGHTS ISSUE WITH WARRANTS;
(III) PROPOSED EXEMPTION 1;
(IV) PROPOSED EXEMPTION 2; AND
(V) PROPOSED EXEMPTION 3

(COLLECTIVELY REFERRED TO AS THE "PROPOSALS")