Gabungan AQRS sees brighter prospects for FY19-FY21

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KOTA DAMANSARA (Sept 5): Gabungan AQRS Bhd expects better performance for financial years ending Dec 31, 2019 (FY19) to FY21, buoyed by its construction, property development and precast component manufacturing businesses.

Group chief executive officer Datuk Azizan Jaafar said Gabungan AQRS's earnings and fundamentals will get better from FY19 to 2021.

"Currently, our (construction) order book stands at RM2.4 billion and this will carry us for the next three years. So, that is (a) very positive thing that we have," Azizan told reporters after the group's extraordinary general meeting (EGM) here today.

Gabungan AQRS also expects to register income from its property projects E'Island Residence in Puchong, Selangor and The Peak in Johor Bahru, Johor.

"So when we launch and get the proceeds from the sales of E'Island Residence development and unsold units from The Peak, it will bring cash to the company's coffer. The company's earnings and fundamental will get better from next year up to 2021," Azizan said.

Gabungan AQRS undertakes its precast component manufacturing via 49%-owned associate SEDCO Precast Sdn Bhd. The remaining 51% stake in SEDCO Precast is owned by Sabah Economic Development Corp.

Gabungan AQRS's website indicates that SEDCO Precast operates on an 18.67-acre (7.47ha) land in Tuaran, Sabah. The plant currently has an annual production capacity of 36,000 tonnes, which could be expanded to 150,000 tonnes per annum.

According to the website, aside from gunning for construction jobs under the Pan Borneo Highway Sabah, Gabungan AQRS is also poised to secure significant orders for precast components for the Pan Borneo Highway Sabah via SEDCO Precast.

At the press conference, Azizan said: "If we get more orders for our precast component for the Sabah highway, it will add more value to our business and earnings. We spent only RM3 million for the plant and the return on investment will be very good because we don't have any borrowings for the plant."

At the EGM earlier, Gabungan AQRS shareholders had approved the company's proposed bonus issue of 123.65 million new warrants. The bonus issue will be undertaken on the basis of one warrant for every four existing shares held.