Harvest Court Industries Bhd to diversify into property development

Harvest Court Industries Bhd to diversify into property development

SHAH ALAM, Sept 14  — Harvest Court Industries Bhd, which manufactures timber-related products, plans to diversify into property development while focusing more on timber services to return to profitability by the end of its 2017 financial year.

Managing Director Datuk Eddie Chai Woon Chet said the company had identified two prime areas in Selayang in Selangor and Melaka for development.

“We are negotiating with business associates that own the land parcels in the two areas for possible joint ventures.

“These discussions are still at the preliminary stages and once things have firmed up, we will disclose them,” he told reporters after the company’s annual general meeting here, Monday.

On timber-related business, he said the company would continue with timber services amid the restructuring scheme currently being undertaken at its factory under the company’s turnaround plan.

On the revamp scheme, Chai said the company would cease its business in the manufacturing of timber doors and would emphasise more on timber services such as custom moulding and kiln drying, which provide better profit margins.

He said the construction and property segment would provide more revenue once the activities kicked off in the first quarter of fiscal 2017.

Harvest Court recorded a pre-tax loss of RM1 million in the first quarter (Q1) ended June 30, 2015 on the back of a revenue of RM1.56 million.

The company has changed its financial year end to March 31 from Dec 31, thus there are no comparative figures for the Q1 results.