Malaysia Aica Bhd (MAICA) marked its first quarterly report with property development as one of its core businesses by registering revenue of approximately RM23 million for its fourth quarter result ended 31 March 2014 for the Group. This represented an impressive increase of almost 389% over the approximate RM4.7 million revenue reported for the corresponding quarter for the last financial year.
The profit after tax and minority interests (PATMI) of the Group also improved significantly for the financial year ended 31 March 2014 whereby it recorded a PATMI of about RM2.3 million for the fourth quarter 2014 alone and RM3.6 million for the Financial Year End 2014. Compared to the corresponding period for the last financial year, this represented an increase of around 17.4 times and 2.6 times respectively. This tremendous increase is mainly due to the contribution from its new property development business which registered a total revenue and profit before tax of approximately RM18.4 million and RM3.1 million respectively.
“With MAICA venturing into the property development business, the performance of the Group has improved substantially whereby our property development division has contributed more than 50% of the total revenue and profit of the Group for the FYE 2014,” said Datuk Ter Leong Yap, the Executive Chairman of Maica who is also spearheading the property development division.
Datuk Ter continued to add that he was very confident that the property development division will continue to play an important role in the overall growth of the Group as compared to the manufacturing division.
“Our 3.55 acres land in Bukit Jelutong which was recently acquired is expected to generate a Gross Development Value of RM260 million over the next four years. We will continue to source for more prime and suitable land banks for development purposes with the ultimate aim of enhancing the Group’s profitability and therefore shareholders’ value”, he said.
Meanwhile, MAICA had also appointed Mr Ho Hon Sang as its new CEO to drive its property development expansion. Ho, an engineer by profession began his professional career as an engineer involved with the development of the North South Expressway. He was the Managing Director of the Property Development Division of Sunway Bhd before assuming his current position as CEO of Malaysia Aica Bhd. Ho comes with over 30 years experience in the property development industry, engineering, consultancy, road privatization and general management.
On March 7, MAICA announced that the Company proposed to change its name from “Malaysia Aica Berhad” to “Sunsuria Berhad” and then on March 28, MAICA announced a proposed renounceable rights issue.
The proposed renounceable rights issue will involve issuing up to 475,084,416 new ordinary shares of RM0.50 each in MAICA on the basis of three Rights Shares for every one existing MAICA share held, together with up to 158,361,472 free detachable Warrants on the basis of one free Warrant for every three Rights Shares subscribed, at an issue price to be determined later. The raised funds would be to further growth and expand the property development business of MAICA which is in line with MAICA’s immediate strategic plan to augment its new property development business and its future expansion.
The proposed name change and proposed rights issue are subject to the approval of MAICA shareholders at the forthcoming Extraordinary General Meeting to be convened on 12 May 2014.