PETALING JAYA, June 15 (Bernama) — Tracking solutions provider and property developer Grand-Flo Bhd, is eyeing higher revenue from its property division, in line with its construction progress, for the financial year ending Dec 31, 2016.
Group Managing Director/Group President Tan Bak Hong said, the company has currently two ongoing projects located in mainland Penang, namely Vortex Business Park and The Glades.
“The RM220 million gross development value (GDV) Vortex Business Park comprising commercial and industrial properties in Batu Kawan had a 80% take-up for the 66 units launched in phase one.
“Phase two is slated for launch in the first quarter of next year,” he told reporters after the company’s 13th annual general meeting here Wednesday.
The Glades with a GDV of RM63 million and featuring landed residential properties in Bukit Mertajam, is 30% sold.
“Overall, we are expecting up to 40% revenue contributions from the property segment this year, compared to 30% in 2015.
“Both the projects will keep Grand-Flo busy until next year.
“Although, the strict loan regulations by banks, has dampened the overall property sector, we are determined to deliver the projects within the stipulated timeframe of 2017, because they are our maiden ventures,” Tan said.
Grand-Flo’s total unbilled sales from ongoing projects amounted to RM36.2 million as of March 31, 2016, to be recognised until 2017.
Of the total revenue recorded in the first quarter ended March 31, 2016, RM15.2 million or 48.1% was attributed to the property division.
The company is also seeking land bank in the Klang Valley area, and would be announcing a new project within one year.
Turning to the tracking solutions business, Tan said the company aims to maintain its market share by providing more value-add and by scaling the business model to fit customers’ order book requirements.
The company currently has a between 40-50% market share in this business sector.
“We have been the entrenched player supporting numerous logistics and manufacturing companies for many years. Despite the challenging economy, we aim to maintain our market share,” Tan said.
Grand-Flo’s balance sheet remained strong with a net gearing of 0.1 as at first quarter 2016.
At the AGM today, shareholders approved a first and final tax exempt dividend of 0.5 sen per share in respect of FY2015, which translates into a total dividend payout of RM2.4 million representing 20.2% of FY2015 net profit.