MAIN Market-listed Ageson Bhd will leverage the Internet-of-Things (IoT) concept and usage of new construction technologies notably building information modelling (BIM) for better management of timeframe and costing for all its future property development projects.
The company expects to generate long-term recurring income with its strategic focus on the building industry’s digitalisation drive, according to its executive director Datuk Seri Liew Kok Leong.
“By embarking on digital transformation in building industries, the group is able to streamline, monitor, analyse and review the construction process, thus increasing efficiencies and achieve cost savings,” he pointed out.
Moving forward, Liew expects the group to focus on high margin businesses by participating in public-private partnership (PPP) projects in Malaysia or to tap overseas projects by exploring business partnerships with foreign multinational enterprises.
“This is in line with the Government’s intention to increase the stock of affordable housing with plan afoot to build one million housing units by end-2029,” added Liew.
In this regard, Ageson has initiated an asset-light strategy to collaborate with potential government bodies to secure more landbank for the group’s expansion.
Some of the projects that the group is working on include development of a land parcel in excess of 475 acres in Perak for a mixed development project with an estimated gross development value (GDV) of RM1.24 bil.
To re-cap, Ageson has inked a development rights agreement (DRA) with Menteri Besar Incorporated (Perak) in January this year.
Strong sustenance
Despite the nationwide total lockdown that was imposed beginning June 1, Ageson managed to post a double-digit quarter-on-quarter (qoq) earnings with improved sales in its 4Q FY6/2021.
On a year-on-year (yoy) basis, however, the group’s net profit stood at RM8.26 mil in its 4Q FY6/2021 against RM17.62 mil in the preceding year’s corresponding quarter. This was mainly due to the lower margin from the trading of construction materials and higher operating costs incurred during the financial period.
Aside from having successfully avoided losses in all of its financial quarters since 2020, Ageson’s sustained profitability performance is attributable to proactive measures undertaken by its management to shift the company’s focus towards the trading of construction materials.
“The group has managed to sustain its bottom-line despite the severe impact of the lockdown on both the construction and property development business,” commented Ageson’s executive director Datuk Seri Chin Kok Foong..
“Throughout this period, Ageson has undertaken proactive measures to focus on the trading of construction materials during the lockdown to offset the impact of the MCO on the group’s earnings.”
At 4.11pm, Ageson was unchanged at 9.5 sen with 3.58 million shares traded, thus valuing the company at RM123 mil. – Aug 24, 2021
