Weida to Delay Property Projects to More Opportune Time

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KUALA LUMPUR (Sept 30): Weida (M) Bhd, a polyethylene-based building materials manufacturer which is also involved in property development, will wait for a more opportune time to launch its projects due to a slowdown in the property market.

“In view of the slowdown in the overall property market, the group is taking a prudent approach and will await a more opportune time to launch our other projects. At the moment, our focus is on delivering value and quality for our existing customers,” said Weida’s property development division executive director Victor Lee in a statement today.

According to its website, there are two projects in its pipeline: the high-rise residential Ardena Mont’Kiara and another planned development in Cheras.

Weida said the weakening of the ringgit will pose a challenge to the profitability of its manufacturing products, though it expects to mitigate that by upping sales, rationalising costs.

“Under the current uncertain conditions, we are fortunate to have strong presence in Sabah and Sarawak where major infrastructures projects are undertaken, for which many of our products and specialised construction services are relevant,” said Weida’s executive director Chew Chin Choong.

Its lower net profit for the financial year ended Mar 31, 2015 (FY15) of RM17.4 million compared to RM22.1 million in FY14 was due to a one-off RM2.3 million impairment on property, plant and equipment in its manufacturing segment, besides RM7.8 million preliminary expenses for the group’s planned property developments in Mont’ Kiara and Cheras.

The group said it is constructing telecommunication towers under Phase 1 of Time 3 Extension Programme.

“Currently, we are constructing nearly 100 of these towers, the bulk of which will be completed and handed over within the coming months,” it added.

Weida’s stock, which peaked at RM1.76 in February this year, closed at RM1.52, 1 sen or 0.66% higher from yesterday’s close, for a market capitalisation of RM192.88 million.

 

News source: (The Edge/Yimie Yong)

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