KUALA LUMPUR (Jun 1): Ewein Bhd — which is looking to bag the next parcel of land that Consortium Zenith BUCG Sdn Bhd (CZBUCG) will be offering at Bandar Tanjong Pinang, Penang for development — is incorporating a new 60%-owned subsidiary called Ewein Zenith II Sdn Bhd in anticipation of the proposed project.

The remaining 40% stake in Ewein Zenith II will be held by CZBUCG.

In a filing with Bursa Malaysia, Ewein (fundamental: 1.55; valuation: 1.4) said the board of directors of its wholly-owned subsidiary, Ewein Land Sdn Bhd,  approved today to incorporate Ewein Zenith II.

"An application has been made to the Companies Commission of Malaysia today, for the said incorporation," it added.

The proposed directors of Ewein Zenith II will be Ewein managing director Datuk Ewe Swee Kheng, CZBUCG chairman Datuk Zarul Ahmad Mohd Zulkifli and Ewein director Chan Gooi Yew.

Ewein said the intended principal activities of Ewein Zenith II will be property development, construction and property investment.

According to a source close to the matter, the incorporation of Ewein Zenith II is in anticipation of Ewein bagging the next parcel of land, measuring 4.29 acres (1.73ha) at Bandar Tanjong Pinang.

“Their (Ewein) chances are getting more visible. That is why they are setting up a new subsidiary, with the purpose of managing the proposed project,” the source told theedgemarkets.com today.

In an April interview with The Edge Financial Daily, Ewe had indicated that the next property project at Bandar Tanjong Pinang was likely to be another high-rise residential development. It is understood that the second project will have a gross development value (GDV) of RM1 billion.

If successful, it would be Ewein's second project in Penang. On March 31, 2015, Ewein, through Ewein Zenith Sdn Bhd — a 60:40 JV between Ewein and CZBUCG — received planning permission from the Penang Island City Council to develop luxury serviced apartments on a 3.67-acre piece of freehold land in Bandar Tanjong Pinang.

Dubbed “City of Dreams”, the project features two blocks of 38-storey towers, housing a total of 572 units with built-ups ranging from 1,100 sq ft to 2,350 sq ft.

Ewein's shares fell 4.5 sen or 4.62% to close at 93 sen per share today, with over 2.49 million shares done, giving it a market capitalisation of RM205.66 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.)