Report Date and Financial Year
- The report is for the financial year ended 30 June 2024.
Key Financial Highlights
- Revenue: RM245.5 million, a 9% decrease compared to the previous year.
- Gross Profit: RM38.2 million, an 8% increase over the previous year.
- Profit After Tax: RM32.3 million, showing a significant improvement from the previous year’s loss of RM228.9 million.
- Primary Revenue Driver: Property development, contributing RM233.4 million.
- Notable Projects: Vivo Executive Apartment, Versa, and Viluxe Phase 1 contributed significantly to revenue.
Dividend Information
- The report does not explicitly mention any dividends being declared for the financial year 2024.
Company Actions to Improve Profitability
- Winding Up of Aspen Glove: This strategic move was made to safeguard financial health. The company now focuses on property development, resulting in no contingent liabilities.
- Launch of Versa (2023): Tailored for first-time homebuyers, Versa is expected to meet market demand.
- Sustainability Focus: The company has integrated Environmental, Social, and Governance (ESG) principles into all future projects, aligning with market preferences for environmentally sustainable options.
- Clearing Inventories: The company has nearly sold out completed projects, strengthening its financial position.
Strategic Partnerships and Business Developments
- Joint ventures with Ikano Retail and Marriott International enhance their market reach in property development.
- Penang as a Business Hub: The company focuses on developments in Batu Kawan, Penang, recognizing the area’s growing prominence in the semiconductor industry.
Sustainability and ESG Efforts
- Committed to obtaining Green Certification for ongoing projects.
- Promoting water conservation through low-flow water fittings.
- Maintaining high safety standards with zero lost-time injuries.
Investor Recommendations
- Current Investors: Given the company’s turnaround in profitability, focus on ESG initiatives, and expansion in a growing market (Penang), it may be beneficial for investors to hold the stock, as the company’s focus on property development appears to be promising.
- Prospective Investors: The company’s recent profitable performance, strategic wind-up of non-core assets, and sustainability efforts could make it an attractive option for those looking to invest in the property sector. It is advisable to consider a long-term investment given their ongoing projects and market focus.
Disclaimer: The above recommendations are based on information from the report and do not constitute financial advice. Investors should conduct their due diligence or consult a financial advisor.
Notable Milestones and Future Projects
- Versa: Launched in 2023 and on track to meet market demand.
- Viluxe: Phase 1 handed over, Phase 2 planned.
- Upcoming Projects: The company has several projects in the pipeline, including Viluxe Phase 2 and serviced residences in Aspen Vision City, indicating growth prospects.
