An in-depth examination of the MDA methodology
Tightening up the criteria selection of performing property companies
THE Malaysia Developers Awards (MDA) 2023 serves 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 two tiers based on their market capitalisation as of April 30, 2023:
Selecting the winners
The TOTC is divided into quantitative and qualitative components with a focus on performing property companies. Some amendment was done to this year’s methodology following a post mortem with the organising committee. For this year, the quantitative component is divided into four attributes: Revenue Growth, Net Profit Growth, Stability and Sustainability. Collectively, this component now contributes 50% to the total score, instead of 70%.
For the qualitative component, the emphasis is on Placemaking Ingenuity, ESG (environmental, social and governance) Initiatives, Creative Digitalisation and transparency. This component is worth 50% and the breakdown will be discussed in later pages.
Based on their performance solely on the quantitative attributes, the top 20 scorers from the RM1bil and above tier and the top 20 scorers from the below RM1bil tier were invited to participate in this year’s MDA.
TOTC quantitative rankings – Revenue Growth
The Revenue Growth attribute is based on a company’s performance over three years from 2020 to 2022, with 2019 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 a preference for those companies scoring a higher percentage. For example, in the RM1bil and above category, Malaysia Resources Corporation Bhd (MRCB) achieved three consecutive years of positive revenue growth and a modified CAGR of 19.8%. This achievement puts MRCB at the top for this attribute.
Of the top 10 rankers in the TOTC RM1bil and above category, MRCB was the only company in the Top 10 that saw three years of positive growth. However, it must be noted that while a company may register negative growth, it does not mean it has not registered a positive revenue, only that it was earning a lower revenue.
Similarly, in the TOTC below RM1bil category, NCT Alliance Bhd also achieved three consecutive years of positive revenue growth and a modified CAGR of 63.28%. This places it in the top spot for this attribute. It is also noteworthy to point out that NCT Alliance was also the only company to register three consecutive years of positive revenue growth in the Top 5.
Ranking by revenue growth
|RM1bil and above tier|
|2||HCK Capital Group Bhd|
|3||Mah Sing Group Bhd|
|4||IOI Properties Group Bhd|
|5||OSK Holdings Bhd|
|6||Sime Darby Property Bhd|
|7||Matrix Concepts Holding Bhd|
|8||UEM Sunrise Bhd|
|10||Tropicana Corporation Bhd|
Ranking by revenue growth
|Below RM1bil tier|
|1||NCT Alliance Bhd|
|2||LBS Bina Group Bhd|
|3||Paramount Corporation Bhd|
|4||JKG Land Bhd|