KUALA LUMPUR: Vizione Holdings Bhd, which is diversifying its businesses to include property development as part of its turnaround plan, expects the new business to account for 20% to 30% of the group’s revenue going forward.

“Vizione is a construction-based company. Property will be our second income [stream],” its chairman Datuk Dr Raman Ismail said yesterday.

Vizione returned to the black in the first financial quarter ended Aug 31, 2016 (1QFY17), posting a net profit of RM121,000 or 0.04 sen a share, compared to a net loss of RM883,000 or 0.29 sen a share a year ago, mainly due to the discontinuation of its loss-making electronic manufacturing services after the disposal of its subsidiary Singatronics (M) Sdn Bhd on Jan 29.

Revenue, however, fell 16% to RM8.61 million from RM10.25 million, on lower billings from building projects.

Vizione is currently pursuing five People’s Housing Programme (PPR) projects, two in Sabah and the other three in Kedah, Terengganu and Kelantan respectively.

Last month, the group announced its plan to raise between RM9 million and RM73.16 million via a proposed rights issue with warrants. Proceeds from the rights issue of up to 731.63 million shares together with up to 365.81 million free detachable warrants will be used to undertake more subcontract works for PPR projects.

Based on the minimum amount of RM9 million from the rights issue, Vizione chief financial officer Simon Lim said at least two PPR projects can be undertaken.

He noted that Vizione’s current order book stands at RM140 million, comprising mainly construction projects, which will keep the group busy for the next two years.

According to its managing director Datuk Ng Aun Hooi, construction of residential projects currently fills its entire tender book. “Infrastructure and property development jobs are in our pipeline.”

Ng said the group is also looking into property joint ventures (JVs) with landowners. He cited its JV with Paragon Residencia Sdn Bhd in July to develop a 28-storey apartment project in Seri Kembangan, which has a gross development value (GDV) of RM152.22 million.

Paragon Residencia will receive 20% of the GDV, while Vizione will enjoy the remaining 80%.

It was reported that Vizione will use up to RM32.6 million of the proceeds to be raised from its proposed rights issue for the JV.

Ng also expects 70% to 80% of the group’s future property projects to come from the government.