Selangor Dredging Bhd (SDB) plans to launch five projects worth about RM1.2 billion over the next 18 months, but will remain cautious and launch them in a staggered manner due to uncertain market conditions.

SDB recorded a fourfold increase in net profit to RM97.1 million for fiscal year March 31, 2008 and is still confident about demand although it admits that it will be a challenge to sustain current profits or to achieve better results.

For the first quarter to June 30, the company made a net profit of RM7.03 million, a 19 per cent decrease from the same quarter last year. Chairman Eddy Chieng said that although the outlook is uncertain, the company has properties which are sold and locked in sales, so it will continue to recognise profits.

The company, which currently has three projects worth RM520 million, will remain ‘cautiously optimistic’ of its five launches, which will include 248 Jalan Ampang, a RM160 million low-rise condominium development to be launched in December, and a RM260 million high-rise condominium project at Gilstead Road, Singapore to be launched early next year.

The other three projects to be launched are: a gated bungalow project in Taman Melati, Kuala Lumpur, Phase 2 of Ameera Residences in Petaling Jaya, and the controversial Damansara 21 in Damansara Heights, where it plans to build 21 luxury bungalows on a hill slope in the second half of 2009.

Managing director, Teh Lip Kim, expressed the need to be flexible, as the company is experiencing a slowdown in demand and are affected by contractors asking for revision of cost. She added that it is exploring ways to purchase steel from stockist and deliver on site to keep the cost low, as well as leveraging on its financial capabilities to seek a way to manage cost.

The group’s other projects include Jia, a 22-unit low-rise condominium situated on Wilkie Road, Singapore, and courtyard homes named 20trees, in Melawati. In addition to property development, SDB is also involved in leasing and hotel operation. The company is now focusing on the local and Singapore markets.