KUALA LUMPUR (Aug 22): Pan Malaysia Holdings Bhd (PMHB)(KL:PMHLDG), a hotel and financial services entity, has proposed diversifying into interior design and fit-out activities and changing its name to Exsim Hospitality Bhd.

This move follows the acquisition of a 65.9% stake in PMHB by Exsim Hospitality Holdings Sdn Bhd, owned by Lim Aik Hoe, Lim Aik Kiat, and Lim Aik Fu, for RM36.73 million from companies linked to tycoon Tan Sri Khoo Kay Peng in April.

In a statement on Thursday, PMHB said the diversification will include interior design, fit-out, and consultancy services. This expansion aims to enhance control over quality and costs in its hospitality operations.

The company said the name change to Exsim Hospitality will better reflect its focus on the hospitality sector and leverage the established "EXSIM" brand, supported by the new owners' 15 years of experience in property development.

Both the proposed diversification and name change will require shareholders' approval at an extraordinary general meeting to be scheduled.

PMHB also recently expanded into managing third-party property units for short-term rentals, adopting a hospitality operator model to meet growing demand.

"We are cautiously optimistic that the new line of business will grow to something that will ultimately contribute significantly to the group as we look to turn around the entity’s current financial performances in the near future. The fit-out business will provide an additional stream of revenue whilst we strengthen our hospitality business,” a spokesperson of the company said.

Additionally, PMHB announced it has secured a RM47.4 million fit-out contract for 560 units in a four-storey office building in Damansara Perdana.

The contract was awarded to its subsidiary, Exsim Concepto Sdn Bhd, by Discovery Media Sdn Bhd. PMHB added that it will actively bid for more projects to build its order book

PMHB has been in the red for four straight quarters. The company closed its financial year ending June 30, 2024 (FY2024) with a net loss widening to RM13.3 million from RM800,000 a year earlier. This was due to a RM9.3 million impairment loss and the lack of a one-time reversal of RM2.6 million, coupled with higher operating expenses.

Quarterly revenue rose 7.2% to RM5.7 million from RM5.3 million, driven by higher occupancy rates.

Shares in PMHB gained one sen, or 2.9%, to 36 sen on Thursday, valuing the company at RM334.4 million. Year-to-date, the stock has risen by 278.95%.