PETALING JAYA : While the higher price of property acquisition and working capital demands have prompted more businesses to raise their debt amounts programmers are also fighting with dwindling profits.
Thong said that sales for the eight property players had grown at strong double digit speeds between 2012 and 2014, a year ago before slowing to 6%.
The earnings increase was kept up by advancing acknowledgement of fast-in the end of foreign undertakings and sales. The present competitive running landscape amid the softer marketplace has raised the demand for more promotion initiatives to encourage clear present stock and new starts, Thong said.
Meanwhile, working capital demands and property acquisitions have pushed the debt amounts of most of the 10 programmers up with some at a fairly rapid clip, in the past two years.
The collective debt burden of the whole sample enlarged 31% and a specific 20% in 2015 and 2014, shrinking most of the debt coverage ratios to the base in their five-year range, Thong included.
Looking forward, he said the credit metrics of most of these programmers were anticipated to stay challenged by the marketplace that was dim, although supported somewhat in sales – by their robust fast.
Despite the weakening credit indexes of a few of these programmers, Thong said this was impartial by their strong market stance and standings, great products, business and geographic diversity and a vast acreage bank to keep up their future increase. Thong included that growth strategies were deemed competitive for about half the firms, thus justifying additional caution amid the hushed surroundings.