Posted by Jimmy Song > 2014-05-29 08:11 | Report Abuse

PETALING JAYA, 26 MAY 2014 – WEIDA (M) BERHAD (“Weida” or the “Group”), announced its 4th quarter results for its financial year ended 31 March 2014 (“Q4FYE2014”) with a revenue of RM81.5 million, an increase of RM1.0 million in the current quarter as compared to the preceding quarter (“Q3FYE2014”). The Group recorded a pre-tax profit (“PBT”) and profit after tax (“PAT”) of RM11.3 million and RM8.6 million respectively in the current quarter. This represents a quarter-on-quarter growth of 131% and 87% respectively compared to Q3FYE2014. In comparison to the same quarter of the previous financial year (“Q4FYE2013”), the Group’s core earnings from continuing activities has increased by a staggering 378% from RM1.8 million in Q4FYE2013 to RM8.6 million in Q4FYE2014. The significant improvement was due to the earnings contribution from the Group’s property segment and higher interest income earned for the period, compounded by lower borrowing costs. For its financial year ended 31 March 2014 (“FYE2014”), Weida reported total revenue of RM321 million, a 22% drop compared to the last financial year (“FYE2013”). The decline in revenue was due to a lower contribution from the Group’s works segment. In addition, it is to be noted that in the last financial year the performance was exceptional because of one-off project supplies driven by government development programs. As a result of the lower revenue for the year under review, the Group reported a PAT of RM23 million which is lower than RM150 million reported in FYE2013 which also included a one-off gain from the disposal of the Group’s oil palm plantation segment of RM125 million. Excluding this one-off gain, the Group current year PAT of RM23 million was marginally lower compared to last financial year of RM25 million. The decline in the Group’s core earnings was mainly attributed to lower progress claims for construction works, which were in their completion stage and one-off constructions costs. The Group also incurred significant marketing expenses in relation to their maiden property development project in Ara Damansara, which was successfully launched during the financial year. The Group’s balance sheet remains very healthy with total shareholders’ equity of RM363 million, and cash of RM245 million. Due to its relatively low borrowings compared to its cash war chest, the Group is currently in a net cash position, with a net asset per share of RM2.86 as at 31 March 2014. During the year, the Group issued a total dividend of RM5.2 million in respect of FYE2013. Property Segment The Group ventured into property development during the financial year, launching its maiden development in Ara Damansara called Urbana Residences in early October 2013 with an estimated Gross Development Value (“GDV”) of RM231 million. To date, the take-up rate of this development is in excess of 90%. This division is expected to broaden our earnings base which will enhance our growth catalyst in the foreseeable future. Currently, the construction schedule for Urbana Residences is on track, with substructure works in active progress. “Weida has always believed in uplifting the standards of our society in everything we do. Over the last 30 years, we have achieved this through our strong values, commitment to excellence and our time honoured tradition of quality. We believe that we are able to embody this philosophy in our property development” commented Dato’ Lee Choon Chin, Group Managing Director. Further to the success of its maiden property development project, the Group is currently planning to launch its next premier residential development in Mont Kiara in the second half of this year. With an estimated GDV of RM350 million, this project will focus heavily on lifestyle themes, landscaping, value as well as our time honoured tradition of delivering quality. “In order to remain relevant in this market and in line with our aspirations to be a leading boutique property developer offering exciting concepts, quality and value, we will have to continue to acquire and accumulate strategic land banks and develop properties that will fit market demands.” continued Dato’ Lee. For the foreseeable future, the Group believes that its manufacturing business segment will continue to grow in line with the sector as a whole and contribute to the Group’s earnings. It will also capitalise on the Tenth Malaysia Plan particularly in areas of water supply, sanitation facilities, housing and general infrastructure works. The Group also believes that the Government’s budget and plans to increase the number of telecommunication towers by another 1,000 units throughout the country will be another growth catalyst for the Group. Towards that, the Group is bidding for building 164 new towers for Sarawak and Sabah. To date, the Group has successfully built 362 telecommunication towers in East Malaysia.