By Sharen Kaur
Published in NST on July 23, 2013
Published in NST on July 23, 2013
RUBBER wood furniture maker SYF Resources Bhd is expected to sustain profitability this year, supported by additional income from its property development activities, say analysts.
SYF posted a net profit of RM50.7 million for the financial year ended July 31 last year, after five consecutive years of losses.
The amount included a RM37.8 million debt waiver and interest write-back upon completion of the company's restructuring scheme, according to its 2012 annual report.
Its profitability during the current financial year is expected to come from both upstream and downstream segments as well as the newly started property development division.
SYF ventured into property development recently with the launch of Semenyih Hi-Tech 5 in Semenyih, Selangor, on a joint-venture basis.
The project comprises 54 units of semi-detached factories and two detached factories. SYF has sold more than 90 per cent of the properties for over RM80 million.
For the nine months ended April 30 this year, SYF registered a net profit of RM11.21 million.
SYF is one of the largest rubber wood furniture manufacturers in Malaysia. Its products are exported to more than 50 countries.
SEG International Bhd founder Tan Sri Clement Hii Chii Kok is a substantial shareholder of SYF with a 20 per cent stake, or 54.48 million shares.
Ng Ah Chai, who is SYF executive chairman and chief executive officer, has a 24.27 per cent direct stake, or 66.1 milion shares.
Going forward, SYF is expected to launch new property projects in the Klang Valley.
SYF is acquiring 3ha of land in Sungai Long in Cheras for RM16 million to build residential properties.
In a filing to Bursa Malaysia, SYF said it expects to launch the project once all approvals and conversions are completed.
Analysts are upbeat on the proposed residential project and expect it to set a new benchmark in pricing for the area.
"Sungai Long is a good growth story with many established property projects and townships nearby. Property sales would depend on what SYF has to offer and how it prices the properties," they said.
"We believe that if the designs are attractive and there are good facilities and connectivity, they would sell like hot cakes," the analysts added.
The proposed project by SYF is located near the Sungai Long Golf & Country Club and Wira Heights.
Wira Heights comprises semi-detached houses and bungalows. The sub-sale price for the properties, built two years ago, is between RM360 and RM425 per sq ft.
SYF posted a net profit of RM50.7 million for the financial year ended July 31 last year, after five consecutive years of losses.
The amount included a RM37.8 million debt waiver and interest write-back upon completion of the company's restructuring scheme, according to its 2012 annual report.
Its profitability during the current financial year is expected to come from both upstream and downstream segments as well as the newly started property development division.
The project comprises 54 units of semi-detached factories and two detached factories. SYF has sold more than 90 per cent of the properties for over RM80 million.
For the nine months ended April 30 this year, SYF registered a net profit of RM11.21 million.
SYF is one of the largest rubber wood furniture manufacturers in Malaysia. Its products are exported to more than 50 countries.
SEG International Bhd founder Tan Sri Clement Hii Chii Kok is a substantial shareholder of SYF with a 20 per cent stake, or 54.48 million shares.
Ng Ah Chai, who is SYF executive chairman and chief executive officer, has a 24.27 per cent direct stake, or 66.1 milion shares.
Going forward, SYF is expected to launch new property projects in the Klang Valley.
SYF is acquiring 3ha of land in Sungai Long in Cheras for RM16 million to build residential properties.
In a filing to Bursa Malaysia, SYF said it expects to launch the project once all approvals and conversions are completed.
Analysts are upbeat on the proposed residential project and expect it to set a new benchmark in pricing for the area.
"Sungai Long is a good growth story with many established property projects and townships nearby. Property sales would depend on what SYF has to offer and how it prices the properties," they said.
"We believe that if the designs are attractive and there are good facilities and connectivity, they would sell like hot cakes," the analysts added.
The proposed project by SYF is located near the Sungai Long Golf & Country Club and Wira Heights.
Wira Heights comprises semi-detached houses and bungalows. The sub-sale price for the properties, built two years ago, is between RM360 and RM425 per sq ft.
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