Vizione sees sustainable earnings for FY17
> Boosted by RM140m firm orderbook and positive first quarter results
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.