by S BIRRUNTHA / pic by TMR FILE

TAFI Industries Bhd’s construction business is progressing well and will contribute positively towards its earnings for the financial year ending Dec 31, 2022.

The company last week secured a RM9.5 million contract from Alpha Asset Sdn Bhd for the construction of a single-storey factory and warehouse together with a two-storey office building in Telok Panglima Garang, Kuala Langat, Selangor.

TAFI Industries had secured a RM30 million construction contract for the Permas City project from Buana Tunggal Sdn Bhd on Dec 8, 2021, together with the estimated RM6 million share of the net gross development value (GDV) proceeds of certain units of properties under the Permas City project.

“We will continue to leverage on TAFI Home & Office Sdn Bhd’s G7 license issued by the Construction Industry Development Board which allows it to tender for construction projects of unlimited value to tender for higher value construction contracts.

“This is from both the private sector and also the government sector to further grow our revenue stream from construction contracts,” group CEO Datuk Seri Bryan Wong stated in a recent release.

Since its diversification into property development business, TAFI Industries has been focusing on its maiden property development at Habu, Pahang, worth RM390 million in GDV, with management anticipating development works on this project to commence this year.

The group has also expanded its property development activities by entering into several joint venture (JV) agreements with different parties for the development of various property projects located within the vicinity of Kuantan, Pahang.

TAFI Industries intends to continue working towards expanding its property development business by securing more JVs for property development projects.

TAFI Industries has kickstarted its construction related business after securing its maiden contract in November 2021 for the site clearance and earthwork for a housing scheme which was completed in the fourth quarter ended Dec 31, 2021 (4Q21).

“We managed to secure another contract on Dec 8, 2021, for construction related works including mechanical and electrical works to complete a mixed commercial development project at Permas City, Johor Baru, Johor.

“We will also work towards tendering and securing more construction contracts from both the private sector and also government sector to further grow our revenue stream from construction contracts,” it noted.

TAFI Industries’ furniture business could benefit from its entry into the North American furniture market which has shown positive results as the company continues to expand on its market share this year.

TAFI Industries added it is hoping to expand market share in the European and Middle East markets and widen its customer base.

“Our recent venture into the local project market for supplying furniture and related services during 4Q21 has shown positive results and we are working towards securing more orders for the local project market for supply of furniture,” it said.

For the 4Q21, TAFI Industries posted a net profit of RM3.25 million against a net loss of RM5.31 million a year ago.

Revenue for the quarter more than doubled to RM18.65 million from RM8.85 million in 4Q20, due to the increase in sales of furniture and income from construction contracts.

For the full financial year 2021 (FY21), the group managed to stage a turnaround to post a net profit of RM5.48 million compared to a net loss of RM9.45 million in FY20, underpinned by the positive quarterly performance.

Annual revenue grew 48.16% to RM43.54 million from RM29.39 million in FY20.

Shares of TAFI Industries closed half sen lower at 72.5 sen last Friday, giving it a market capitalisation of RM275 million.