Vizione expects increased job flows

Group eyes buildings, infrastructure and RE segments

“Having a solid balance sheet is important for us as it enables us to navigate through any headwinds ahead and allows us to take on more large-scale projects.” Datuk Ng Aun Hooi

PETALING JAYA: Vizione Holdings Bhd is riding on the construction industry growth as it focuses on the execution of its key projects that will strengthen its earnings and balance sheet.

The integrated construction engineering group currently has an order book of about Rm3bil and supported by a healthy balance sheet with net cash and net assets of Rm45.1mil and Rm580.5mil, respectively.

Managing director Datuk Ng Aun Hooi told Starbiz that based on the Finance Ministry’s projection, the construction sector is forecast to grow by 11.5% this year, which augurs well for construction players.

“As Malaysia transitions into the endemic phase of Covid-19, the group is also anticipating increased job flows from both the private and public sectors.

“Our tender team continues to work hard on securing new jobs to further enhance our order book,” he said.

Ng said the group is targeting projects particularly in the buildings and infrastructure as well as renewable energy (RE) segments in the country.

“Currently, there are some negotiations ongoing for a few projects and we hope to reach a decision soon.

“The group is encouraged on its prospects for the year, underpinned by our healthy order book coupled with a strong balance sheet.

“We look forward to delivering improved financial performance in the current financial year and beyond,” he added.

Vizione’s joint-venture (JV) company with Permata Rebana Sdn Bhd, called Permata Rebana & Vizione Holdings JV Sdn Bhd, last month was awarded a Rm654mil contract by Pertubuhan Keselamatan Sosial (Perkeso).

The contract involves the planning, design, construction, equipping, testing, commissioning and maintenance of Perkeso’s national robotics and cybernetics rehabilitation centre (phase one) in Bandar Meru Raya, Perak.

The construction engineering company said the contract has a duration of 30 months starting from May 2.

The contract will bring Vizione’s outstanding order book to above the Rm3bil level, giving the group earnings visibility for several years.

The robotics and cybernetics rehabilitation centre would be the first of its kind in Malaysia and would serve as a full rehabilitation treatment programme for all Perkeso members.

Ng said this project would start contributing to earnings in the current financial year ending Nov 30, 2022 (FY22), as well as over the next two financial years.

Although the group reported a Rm3.15mil net profit in the first quarter ended Feb 28, 2022, it however reported a net loss of Rm84.1mil for FY21.

Commenting on the net loss, Ng said it was mainly attributed to the Rm91mil impairment loss on goodwill on the consolidation of its subsidiary, Vizione Builder Sdn Bhd, in adherence to prudent accounting.

The impairment was non-cash in nature and has no impact on the group’s cash flow, he said, adding that following this impairment, Vizione’s balance sheet is leaner and more reflective of its fair economic value.

“The group’s financial position remains strong with a net cash position backed by

healthy net assets per share of 57 sen as of end-february 2022.

“Having a solid balance sheet is important for us as it enables us to navigate through any headwinds ahead and allows us to take on more large-scale projects,” Ng noted.

On its recent rights issue of shares and warrants, he said it was nearly fully-subscribed and has successfully raised Rm81.8mil from the issuance of rights shares with the potential of further proceeds arising from warrant conversions in the future.

Ng said the capital injection from the rights issue serves to strengthen Vizione’s balance sheet and the proceeds would be utilised to fund the group’s existing construction projects.

In March this year, the group completed a renounceable rights issue along with free detachable warrants on the basis of one rights share for every one existing share held, together with one warrant for every two rights shares subscribed.