KUALA LUMPUR (Aug 3): Kanger International Bhd (Kanger) is confident of returning to the black in the coming financial year ended March 31, 2022 (FY22), driven by the group’s new construction division, as it has secured projects with total order book of RM1 billion.
In a statement today, Kanger said it embarked on several exercises to build a resilient business that focuses on growth and sustainability over the past one year from being a bamboo flooring materials manufacturer into a construction segment.
"To enhance the group’s competitive edge in the construction business, Kanger’s acquisition of a 51% stake in building materials supplier Sung Master Holdings Sdn Bhd (Sung Master) will contribute positively to the group in terms of financial performance, as well operational synergies.
"By leveraging Sung Master’s existing suppliers, Kanger can source for building material supplies at relatively competitive prices, which will lead to improved cost efficiencies when tendering for new construction contracts," it said.
The acquisition of Sung Master has been approved by shareholders and the purchase is expected to be completed within the next month, Kanger said.
Sung Master is primarily involved in the sales and trading of building materials, which include timber flooring, tiles, bulk cement, concrete, locksets and sanitary ware, with clients comprising property and construction players, as well as engineering consultants.
Kanger executive director Steven Kuah Choon Ching said the group will expand its construction business by undertaking building construction, civil engineering and project management contracts as a main contractor or sub contractor, moving forward.
"We also aim to secure the Grade 7 contractor licence from the Construction Industry Development Board (CIDB), which will enable us to undertake construction projects of any value.
"Sung Master has consistently delivered a profitable performance over the past three financial years from FY Jan 31, 2018 up to the audited 17-month financial period ended (FPE) June 30, 2020 and latest unaudited 10-month FPE April 30, 2021," he said.
Moreover, Sung Master even paid out dividends totalling RM25 million during this period, he added.