See Hup seeks to diversify into construction contracts business

KUALA LUMPUR (Aug 12): See Hup Consolidated Bhd, the general cargo transporting and freight forwarding services group, has proposed to diversify into construction contracts services.

The planned diversification, the group said, is part of its long-term strategy to improve its financial performance by expanding its existing construction business and reducing its reliance on its existing core business.

The diversification will also expand its revenue stream and earnings base, and lead to a better financial performance, the loss-making group added in a bourse filing yesterday.

For the year ended March 31, 2019 (FY19), See Hup posted a net loss of RM4.56 million on revenue of RM95.83 million. For FY20, it registered a net loss of RM6.62 million on revenue of RM95.56 million, while for FY21 it recorded a net loss of RM3.29 million on revenue of RM79.66 million.

See Hup said it may be able to enhance its existing business network to secure more construction projects in the future.

“The board acknowledges that 2020 was a challenging year for the Malaysian construction industry mainly due to Covid-19 containment measures imposed by the government.

“Nevertheless, the board is optimistic of the future prospects of the Malaysian construction industry as the country goes through a recovery phase, supported by the rolling out of several stimulus packages that included assistance, subsidies and incentives which benefited industry players and the community in the construction sector,” it added.

See Hup’s share price closed five sen or 4.46% higher at RM1.17 yesterday, for a market value of RM94.1 million.

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