The property development division of Naim Holdings Bhd will likely drive most of the company's revenue this year, accounting for a 60 percent contribution, according to research analysts.

Analysts said that Naim currently has RM190 million sales in new property and expects to hit its target of RM300 million sales of properties in 2012, exceeding its highest record of RM250 million sales of new property in 2005.

Naim's property development division showed good performance in the last two years with sales increasing from RM145 million in 2010 to RM230 million in 2011, said an analyst.

"The property division will take the lead in revenue generation for Naim Holdings this year. This is in contrast to the past three years, when construction division was the main revenue contributor, contributing 60 percent to 70 percent of the group revenue."

"The construction division is anticipated to play a lesser role in this year's revenue contribution because some of the group's larger value construction projects like the Murum Dam resettlement scheme (with contract value of RM200mil) will only start in the second half of 2012," said the analyst.

For FY 2011, Naim's construction division was its highest contributor accounting for 63 percent of the RM412 million revenue of the group. The property division followed with 28 percent and nine percent coming from the other divisions.

HwangDBS Vickers Research said Naim will likely be known as a property developer rather than a construction contractor, with its property development showing better margins.

"While revenue contribution from both segments will remain 50:50 in the near term, Naim is targeting a 60:40 bias towards property development," said the research unit.

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