Zooming in on the finer details of performing property companies
THE Malaysia Developers Awards (MDA) serve to give due recognition to deserving property developers for their contributions to the industry and nation. Based on quantitative and qualitative attributes, MDA is divided into two components -- Top of the Charts (TOTC) and Special Awards.
For TOTC, which takes into account Bursa Malaysia-listed property companies, the rankings will be published annually. All companies listed in Bursa Malaysia’s property sector are automatically considered for the awards. For the bigger conglomerations, only their property division will be assessed.
The TOTC is divided into categories:
- TOP 10 (for market capitalisation of RM1bil and above)
- TOP 10 (for market capitalisation of below RM1bil)
Selecting the winners
The TOTC is divided into quantitative and qualitative components with the focus on performing property companies. The quantitative component is further divided into five attributes: Revenue Growth, Net Profit Growth, Stability, Sustainability and Transparency. Collectively, this component contributes 70% to the total score.
For the qualitative component, the emphasis is on Placemaking Ingenuity, ESG (environmental, social and governance) Initiatives and Creative Digitalisation. This component is worth the remaining 30%.
TOTC quantitative rankings - Revenue Growth
The Revenue Growth attribute is based on a company’s performance over a three-year period from 2019 to 2021, with 2018 serving as the base year. Companies that register consistent positive growths over the three years are given preference. The companies are also assessed using a modified compounded annual growth rate (CAGR) formula, with preference for those companies scoring a higher percentage. For example, in the RM1bil and above category, Scientex Bhd achieved three consecutive years of positive revenue growth and a modified CAGR of 18.81%. This achievement puts Scientex at the top for this attribute.
Of the top 10 rankers in the TOTC RM1bil and above category, Scientex was the only company that saw three years of positive growth. However, it must be noted that while companies may register negative growth, it does not mean they were not registering positive revenue, only that they were earning a lower revenue.
Similarly, in the TOTC below RM1bil category, GuocoLand (M) Bhd also achieved three consecutive years of positive revenue growth and a modified CAGR of 42.28%. This places them in top spot for this attribute. It is also noteworthy to point out that Symphony Life Bhd and JianKun International Bhd also registered three consecutive years of positive revenue growth.