Ikhmas Jaya makes third deferment on construction of new manufacturing facility

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KUALA LUMPUR (April 16): Ikhmas Jaya Group Bhd has for the third time deferred the construction of its new prefabricated building system manufacturing facility in Teluk Panglima Garang, Selangor.

The piling specialist, in its exchange filing today, cited the same reason as before for the deferment — there has been no sufficient successful tenders for projects which could utilise the prefabricated building components.

The group had as early as October 2014 sought to convert the land use and set up the facility, and had projected to obtain the certificate of completion and compliance by end-February 2017.

However, it announced a deferment of the construction in March last year. In September, a further postponement of the project was announced.

According to Ikhmas Jaya’s listing prospectus dated June 30, 2015, the new facility was expected to have a total built-up area of 46,150 sq ft, including a 20,000 sq ft warehouse. It was originally set to commence operations in early August 2016.

For its financial year ended Dec 31, 2018 (FY18), Ikhmas Jaya reported a net loss of RM26.93 million, versus an annual net profit of RM6.93 million in FY17, due to impairment charges on contract assets.

Revenue contracted 5.3% to RM287.21 million from RM303.17 million in FY17, due to the decrease in construction activities and as projects were either in the initial take off or in completion phase.

Shares in Ikhmas Jaya finished half a sen or 2.94% lower at 16.5 sen today, for a market capitalisation of RM89.98 million.

The stock has lost about 57% of its value, from 38.5 sen a year ago.