KUALA LUMPUR: Ageson Bhd aims to achieve higher earnings for the current financial year ending June 30, 2021 (FY21) after recorded high net profit in FY20.
With a new management coming on board in the second quarter (Q2) 2019, the group is confident for a sustained growth, backed by its RM149 million construction order book and the export market for its silica sand business.
Ageson has accepted an offer from Techpack Solutions Co Ltd in China to supply silica sand with a value of US$79.50 million (RM339.03 million).
For its property development business, the group will focus on the upcoming project in Batu Ferringhi, Penang, which has a gross development value (GDV) of RM178 million.
This is expected to keep Ageson busy for the next two to three years.
Executive director Datuk Sri Chin Kok Foong said said the group also recorded high profit after tax and minority interests (PATAMI) of RM38.9 million in FY20, as compared to the RM2.7 million registered in FY19.
"Based on what we have planned for the group, we are confident to achieve another record-high result in FY21.
"We constantly review our business strategies based on the developments in the external environment and the growth opportunities that may emerge, taking into account the group's current position," he said.
Chin said this is the reason why in 2020, the group has decided to diversify into sand mining operations.
He said this would reduce the group's reliance on its existing core businesses as well as expand its recurring-earnings base.
Chin believes ongoing business exploration and development will yield good results.
"While property development remains soft in this market condition, it does not hamper us from prospecting other business opportunities like trading of mineral resources.
"Apparently, mineral resources like sand are still in demand by our overseas customers. Indirectly, it allows us to expand geographically, increase export sales and it will ultimately boost our business track record," he added.
Ends