Farlim to bank on 3 sources of revenue

PETALING JAYA: Farlim Group (M) Bhd expects dividend income from its investments, ongoing property projects that are nearing completion, as well as new ventures and launches to drive growth in the current financial year ending Dec 31, 2016.

“The three sources will give us turnover and profitability,” group executive director Datuk Seri Mohamed Iqbal Rawther after the group’s AGM yesterday.

“We have cash-based investment, which is likely to give us fixed and very good returns, while waiting for profits from landbank investment.

“An example of Farlim’s ongoing project is a major business park in Penang which is nearing completion,” he said.

Meanwhile, the new ventures and projects entail existing work in Kajang and Bukit Cerakah in Selangor, Bidor in Perak, as well as Penang.

Farlim will launch its development in Perak within the current year.

The company registered revenue and net profit of RM46.39mil and RM12.7mil respectively, for the financial year ended Dec 31, 2015.

Its revenue increased from RM24.91mil but net profit was lower at RM47.1mil compared with FY2014.

The property developer has a total of 310 acres of landbank as of Dec 31, 2015, with a majority of land located in Penang, Perak, Kuala Lumpur and Selangor.

Farlim is currently in talks with respective parties to secure more landbank.

“Many sellers have approached us because they know that Farlim has the financial means to acquire land without having to get loans from banks.

“Our cash in hand amounts to an estimated RM100mil, as of Dec 31, 2015,” said Farlim chairman and chief executive Tan Sri Lim Gait Tong.

Lim added that Farlim and the land owner should be able to derive a “win-win” situation from an acquisition deal.

Mohamed Iqbal said: “House prices are very high these days, and will remain high if land is expensive, despite moderate construction costs.”

Farlim’s niche is in medium-cost houses.

Lim said: “low-cost housing units are not encouraged as there is a tendency of them turning into slums. Instead, the Government encourages affordable housing.”

Affordable houses are defined as those that cost between RM200,000 to RM500,000 per unit, depending on the location of the project.

We have cash-based investment, which is likely to give us ed and very good returns, while waiting for ro ts from landbank investment. datuk Seri Mohamed iqbal