KUALA LUMPUR (Dec 28): Information technology services provider Inix Technologies Holdings Bhd is being cautious about its new foray into the sand dredging and land reclamation business, and is focusing on delivering projects currently under its belt rather than shoring up business.

Inix executive director Mohd Anuar Mohd Hanadzlah said today the company is focusing on delivering its projects and is not currently bidding for any projects.

"Not at the moment," he told reporters after the companies' annual general meeting when asked if the company is bidding for any contracts.

"Let's say, theoretically, if we have more projects in the pipeline, we will have to buy more vessels.

"We have to take one thing at a time. I would not say at this time, (we should) jump into too many things when we are not capable of doing (them)," he added.

On March 16, Inix entered into a conditional share sale agreement with Galactic Yield Enterprises Ltd to acquire a 30% stake in Galactic Maritime (Malaysia) Sdn Bhd, a dredging and land reclamation services provider, for RM7.2 million, which has since been completed.

The proposed acquisition came after the company scrapped its plan to diversify into the mining business in Indonesia last year due to changes in policy there.

To fund the acquisition, Inix had proposed a two-for-one renounceable rights issue at an issue price of 10 sen per rights share to raise up to RM27.8 million, of which RM5.5 million will also be used to purchase a new vessel for its dredging and land reclamation segment.

Although the deal provided guarantee that Galactic Maritime will achieve a net profit of at least RM3 million for financial year 2016 (FY16), it has raised eyebrows as Galactic Maritime's net profit shrank by 68.16% to RM574,766 for FY14 ended March 31 from RM1.79 million in FY13.

Inix had later announced to Bursa Malaysia on Nov 24 that Galactic Maritime had bagged a RM34.5 million contract to supply three vessels for dredging and land reclamation services for a project in Penang, which is expected to contribute positively to Galactic Maritime earnings for FY16 and FY17.

Currently, the company is reportedly handling two projects in Melaka with a total net book value of RM10 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)