Vizione sees sus­tain­able earn­ings for FY17

> Boosted by RM140m firm or­der­book and pos­i­tive first quar­ter re­sults

The Sun (Malaysia) - - SUNBIZ - BY EE ANN NEE

KUALA LUMPUR: Vizione Hold­ings Bhd ex­pects its earn­ings for the fi­nan­cial year end­ing May 31, 2017 (FY17) to re­main sus­tain­able from FY16, an­chored by its RM140 mil­lion or­der book of con­struc­tion jobs and pos­i­tive first quar­ter re­sults, said CFO Si­mon Lim.

In FY16, Vizione saw a turn­around with a RM113,000 net profit and RM36.71 mil­lion rev­enue, mainly from con­struc­tion ac­tiv­i­ties.

For the first quar­ter ended Aug 31, 2016, Vizione made a profit af­ter tax of RM121,000 against a net loss of RM833,000 the year be­fore. This was, how­ever, on lower rev­enue of RM8.6 mil­lion com­pared with a RM10.25 mil­lion rev­enue for the quar­ter ended Aug 31, 2015.

Vizione, for­merly known as As­tral Supreme Bhd, was in­volved in the man­u­fac­tur­ing, assem­bly and ex­port of elec­tronic and elec­tri­cal prod­ucts un­til De­cem­ber 2015. Vizione then di­vested its loss-mak­ing man­u­fac­tur­ing sub­sidiaries and in Jan­uary di­ver­si­fied its prin­ci­pal ac­tiv­i­ties to in­clude con­struc­tion, prop­erty de­vel­op­ment and prop­erty in­vest­ment ac­tiv­i­ties.

Lim said Vizione has iden­ti­fied five Peo­ple’s Hous­ing Pro­gramme projects in Ke­lan­tan, Sabah, Tereng­ganu, Kedah and a prop­erty de­vel­op­ment joint ven­ture project in Sri Kem­ban­gan, but noted that these projects are sub­ject to suf­fi­cient funds be­ing raised from a rights is­sue ex­er­cise with war­rants. The rights is­sue that will raise RM73 mil­lion is ex­pected to be com­pleted by De­cem­ber.

“There is a min­i­mum sce­nario of RM9 mil­lion (from the rights is­sue) that will al­low us to un­der­take a min­i­mum of two PPR projects,” Lim told a press con­fer­ence af­ter its AGM here yes­ter­day.

The Sri Kem­ban­gan project is a joint ven­ture be­tween Vizione’s wholly-owned sub­sidiary As­tral Supreme De­vel­op­ment Sdn Bhd and Paragon Res­i­den­cia. It is on a 3.2ha land in Mukim Petal­ing, for the pro­posed de­vel­op­ment of 256 units of 28 storey apart­ments with a gross de­vel­op­ment value of RM152.22 mil­lion.

Man­ag­ing di­rec­tor Datuk Ng Aun Hooi said at present, all the group’s rev­enue is from the con­struc­tion seg­ment while prop­erty de­vel­op­ment has yet to con­trib­ute.

“When the pro­ceeds from the rights is­sue comes in, we’ll be able to ex­pand our busi­ness into prop­erty de­vel­op­ment and in­fras­truc­ture, mainly from the govern­ment (projects),” said Ng.

The ex­ist­ing Tawau and Kota Be­lud af­ford­able hous­ing projects un­der­taken by Vizione are also ex­pected to con­trib­ute pos­i­tively to the group’s earn­ings mov­ing for­ward.

Ng said the fo­cus on con­struc­tion and de­vel­op­ment is timely as Bud­get 2017 will pro­vide va­cant land, at strate­gic lo­ca­tions to govern­ment-linked com­pa­nies and 1Malaysia Peo­ple’s Hous­ing Projects, to build more houses.

He cited Bud­get 2017’s af­ford­able, pos­i­tive hous­ing al­lo­ca­tions and ini­tia­tives as a pos­si­ble boost for the group, adding that it holds more pos­si­bil­i­ties for Vizione due to al­lo­ca­tions and ini­tia­tives that tar­get the con­struc­tion and de­vel­op­ment niche.

The group will con­tinue to seek and se­cure new busi­ness op­por­tu­ni­ties in­clud­ing govern­ment projects in or­der to ex­pand its ex­ist­ing busi­ness in the con­struc­tion and de­vel­op­ment sec­tors.

From left: Vizione Hold­ings Bhd CFO Si­mon Lim, ex­ec­u­tive di­rec­tor Wong Kwai Wah, chair­man Datuk Dr Ra­man Is­mail and Ng af­ter its AGM in Kuala Lumpur yes­ter­day.

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