YONG Tai Bhd plans to restructure its existing business while diversifying its income stream to reduce its over-reliance on the property and tourism market.
Key areas that the company has ventured into include the distribution of vaccine and the expansion into gold mining in Pahang by focusing on collaboration with valued partners, according to its CEO Datuk Wira Boo Kuang Loon.
Among some of the restructuring plans are the monetisation of the Encore Melaka theatre, which the group is currently exploring through digital tokenisation.
This will make Yong Tai as one of the first Malaysian listed companies to tap on the potential of the blockchain space.
As for its venture into the distribution of vaccine business, Yong Tai has partnered with China-based Shenzhen Kangtai Biological Products Co. Ltd, one of the top Chinese vaccine manufacturers, to exclusively distribute the inactivated COVID-19 vaccine in Malaysia. Currently, the project is undergoing a Phase III clinical trial in the country.
“The development of Phase III clinical trial is very promising. The enrolment of 3,000 volunteers for the clinical trial will be completed by end-August 2021 which is faster than the expected,” Boo pointed out.
“We’re optimistic that the clinical trial data which will be available soon will be quite promising as seen by those in China. While we are waiting for the interim clinical trial data, we will also be applying to the National Pharmaceutical Regulatory Agency (NPRA) for conditional registration approval (CRA) in Malaysia.”
Given the need for a third booster COVID-19 vaccine shot to protect against the Delta variant, Boo envisages that demand for COVID-19 vaccine is likely to remain strong, thus able to support Yong Tai’s earnings growth in FY6/2022.
Meanwhile, the group’s expansion into gold mining through its appointment as the sole and exclusive mining operator of an area covering 100 hectares (247.11 acres) in Pahang will be another key catalyst for earnings growth. The group has resumed the exploration and preparation works recently.
With the monthly gold production capacity estimated at 20kg/month with the assumption of an average gold price of around RM200,000/kg, Yong Tai is set to record a revenue of RM4 mil/month from its gold mining venture.
The group expects production to commence very soon which again will contribute positively to its FY6/2022 financial results.
For its FY6/2021, Yong Tai’s revenue jumped by 2.7 times to RM114.3 mil while its EBITDA (earnings before interest, taxes, depreciation and amortisation) turns positive at RM16 mil from a year ago. The group also managed to narrow its net loss to -RM8.3 mil in FY6/2021 from -RM47.05 mil in the corresponding period last year.
At the close of yesterday’s trading, the company was up 1 sen or 4.55% to 23 sen with 5.84 million shares traded, thus valuing the company at RM310 mil. – Aug 28, 2021
