Describing Covid-19 as an enhancer, its newly appointed COO Steven Choi said the group is particularly interested in healthcare ventures.
“Currently, we are finalising and awaiting approval for our corporate exercise. We hope to announce a couple of projects by the end of the year,” he told reporters after the group’s AGM in Subang Jaya, Selangor, yesterday.
The piling and engineering firm’s outstanding orderbook value of RM613 million as at Dec 31, 2019, will give the company earnings visibility for the next two to three years.
For now, piling and construction business will remain the company’s core earner, while it intends to become a mini venture capital firm and invests in its business associates.
Ikhmas Jaya is also undertaking its transformation plan called “6R” that will involve a series of corporate exercises to improve the shareholders’ equity, address working capital needs, and improve cashflow and collection of outstanding payments from debtors.
The 6R Transformation Plan stands for restructuring and recapitalisation; reorganise and re-energise; revitalisation and regularisation; realign and re-trimming; rebranding and rewards; and recovery and reformation.
The group is looking into completing an outstanding RM600 million worth of construction contracts mainly from four major projects — the Light Rail Transit Line 3 (LRT3) (S09), Sungai Pendang flood mitigation project in Kedah, Ampang Lot 155 demolition and car park construction, and the Pulau Redang infrastructure and affordable homes project.
Choi added that the group will focus on government contracts and concession projects, which give longterm stable and recurring income.
Source: The Malaysian Reserve