,Executive director Steven Kuah Choon Ching (pic) said although the contribution from the segment is small currently, it is a potential growth driver, apart from the construction business, going forward.
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PETALING JAYA: Fresh from its acquisition of a 51% stake in building materials supplier Sung Master Holdings Sdn Bhd, Kanger International Bhd aims to strengthen the contribution of property investment and management business to the group’s revenue.
Executive director Steven Kuah Choon Ching (pic) said although the contribution from the segment is small currently, it is a potential growth driver, apart from the construction business, going forward.
The bamboo flooring manufacturer is exploring new revenue streams to put the group on a stronger footing to turn around its financial performance.
It hopes to return to the black in the financial year ending March 31, 2022 (FY22) after incurring a net loss of RM47.45mil in FY21.
Kuah said that in an effort to expand the contribution from the property investment and management business, it has recently purchased 126 serviced apartments in Antara @ Genting Highlands for RM142.9mil.
The development of these properties are expected to be completed by 2024, he added.The bamboo flooring manufacturer is exploring new revenue streams to put the group on a stronger footing to turn around its financial performance.
As for the rationale of this acquisition, Kuah said: “With the Covid-19 pandemic, we felt it was an opportune time for us to invest in properties at attractive prices. As it was an en-bloc purchase, we were able to obtain a discount of about 19%.”
Notwithstanding the prevalent challenges in the tourism sector, he is upbeat that the potential of these properties – located at Genting Highlands – would bode well for the group on a multi-year horizon.
“By the time these serviced apartments are completed in 2024, the tourism industry would have returned to the pre-pandemic era, and Genting Highlands is a major destination that attracts large numbers of local and foreign tourists all year round.”
Kuah is positive that the properties would bring in a steady flow of recurring income by way of rentals.
“In addition, we will benefit from capital gains when the properties are sold, given our attractive entry prices,” he added.
“All in all, we are in the midst of transforming the group into a robust and diversified business entity that generates sustainable value for its shareholders.
“The progress has been positive thus far and we expect these developments to come into fruition within the next few years.”