KUALA LUMPUR (March 1): Dolphin International Bhd, a manufacturer of palm oil milling machinery, has proposed to diversify its business to include construction and property development to further expand its revenue stream and earnings base.
In a filing with Bursa Malaysia today, Dolphin said the group, via its wholly-owned subsidiary Dolphin Construction Sdn Bhd, had secured its first construction contract from Syarqiah Holdings Sdn Bhd in June last year.
The RM13.2 million contract entailed the supply of construction materials for the upgrading of facilities related to the train cargo terminal at Padang Besar, Perlis.
“Premised on the above, the group intends to diversify and expand its existing principal business activities to include construction and property development in order to enhance its prospects.
“The board anticipates that the proposed diversification may contribute 25% or more of the net profits of the group in the future. As such, the board proposes to seek the prior approval from shareholders of the company at the forthcoming extraordinary general meeting for the proposed diversification,” it said.
Dolphin shares fell 0.5 sen or 3.57% to close at 13.5 sen today, giving it a market capitalisation of RM32.97 million.