Digistar - property development, key contributor

It has secured a rm280 million turnkey contract to build a government training centre in Melaka. The contract might be just what the company needs for its latest results have left ina lot to be desired.

Its diversification into property development in 2012 does not seem to have gone down well with investors as the new venture is a vastly different from its core business of ICT.

While a new business activity, property development has become the key contributor to its income, pending revenue from fresh ICT projects.

It also sees opportunities in the 2015 deadline for the migration of television broadcasting from analogue to digital broadcasting.

Meanwhile it is said to have reached an agreement with Puncak Semangat Sdn Bhd, which is bidding for the government’s rm2 billion digital television broadcasting project.

Market observers say Puncak Semangat is expected to carve out the digitalization of RTM for Digistar. This portion of the project is worth over rm500 million.