Weida to embark on more residential developments in FY15

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KUALA LUMPUR (Sept 26): Weida (M) Bhd plans to embark on more residential development projects within the Greater KL or Klang Valley area for its financial year ending March 31, 2015.

The group has already initiated planning and design works on its next project, Ardena — a residential development located in Mont’ Kiara, with gross development value of RM330 million.

“Ardena sits on a prime freehold land conveniently served by established amenities, schools and highways. This will also be an urban paradise, a serene retreat from hectic city life for the residents,” said Datuk Lee Choon Chin, group managing director of Weida, in a press release.

Its maiden property project, Urbana Residences in Ara Damansara, has achieved a take up rate of over 90% and is on track for completion and handover by October 2016.

For its telecommunications segment, Weida said that it is well-positioned to tap on the additional 1,000 telecommunication towers/sites that Malaysian Communications and Multimedia Commission would soon order, to build nationwide.

Meanwhile, the group plans to increase its product range for its building materials manufacturing segment, to improve contribution from the division.

“These products are well-positioned to meet demands fuelled by major building and infrastructure developments throughout the country,” Weida said.

During its annual general meeting today, Weida’s shareholders have approved the proposed first and final single-tier dividend payment of 3 sen per share, translating to a dividend payment of RM3.8 million or 17.2% of its earnings for the financial year ended March 31, 2014.

In a statement, Lee said FY2014 turned out to be another year of respectable achievements for Weida, where the group recorded a turnover of RM318 million.  

Although profit after tax from continuing operations of RM23 million was slightly lower compared to RM25 million in the previous year, Weida is optimistic that its profit growth will resume, said Lee.  

He added that financially, the group’s balance sheet remains healthy, with total shareholders’ equity of RM350 million and cash of RM245 million. Due to its relatively low borrowings compared to its cash war chest, Weida is currently in a large net cash position, with net asset per share of RM2.76 as at March 31, 2014.

The counter closed 3 sen lower at RM1.77, with a market capitalisation of RM224.6 million.