It served a niche market, supplying kitchen fittings to only high end property projects. But with more developers fitting out the kitchens on mid range residential properties these days, its market has grown by leaps and bounds.
It is now supplying to developments for residential properties that are priced from rm700000 to rm800000. Indeed, it sees an inclination for fully furnished homes in the next one to two years from Jan 2014.
Demand for built in finishing will remain intact. The company has enough projects to keep it busy until 2016/2017.
As at Sept 30 2013, it had cash and bank balances of rm17.13 million versus borrowings of rm19.36 million.
It has outstanding order book of rm200 million. It has also tenders worth rm600 million.
Its clients include Tropicana, SP Setia and UEM Sunrise which own large landbank there in Johor have invited the company to bid for future projects. With project coming onstream in 2014, it expects the segment to contribute 70% to the group’s earnings. The remaining 30% is seen coming from its retail segment.
It has also diversified into interior design.
The group hopes to expand its presence in Indonesia. The market for project based work in Indonesia is still in the early stages of growth with the trend yet to catch on among the consumers there.
It had disposed seven acres of land in Kota Damansara for rm75 million. It will receive rm50.38 million cash in the deal while the remaining sum will be settled in the form of shop offices of 8 units.
After disposing the above land which is its headquarter, it had bought another factory cost the company rm79 million.
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