By NUR HAZIQAH A MALEK / Pic By MUHD AMIN NAHARUL
Grand-Flo Bhd is anticipating higher earnings contribution from its information technology (IT) segment on the back of higher Industrial Revolution 4.0 demand, along with the zero-rated Goods and Services Tax.
The tracking solutions provider’s group president and MD Derrick Tan Bak Hong said the segment is expected to contribute up to 70% of the group’s bottom line.
“We are also confident in securing additional projects worth RM21 million on top of our total orderbook of RM34 million in IT. The property segment appears soft right now. However, in the IT segment, the demand is high,” he told reporters at the company’s AGM in Selangor yesterday.
Tan said the group is also planning to dispose of its 14.12% stake in Simat Label Co Ltd, its entryway into the Thailand market, sometime this year.
“This disposal will be done to streamline our business into two core segments,” he said.
Grand-Flo also sold its shareholding in Simat Label’s associate company — Simat Technologies Public Co Ltd last year.
The group has also received a nod from its shareholders to acquire the balance equity stakes in 50%-owned property development subsidiary, Innoceria Sdn Bhd, after having acquired half of the company’s stakes in August 2014.
Group ED Chuah Chew Hai said it will participate in a private landed housing project tender as the first under Grand-Flo next week.
“We will start our bid at RM15 million for the project located in Alor Setar, Kedah, while we keep a look out for more opportunities in the central region,” he said.
Innoceria currently has two projects in mainland Penang, namely the Vortex Business Park project which is a commercial development located in Batu Kawan, and the Glades, a luxury residence in Bukit Mertajam.
The second phase of the business park project is expected to have an estimated gross development value of RM88.17 million and gross development profit of RM13.67 million.