KUALA LUMPUR: Kanger International Bhd is confident of returning to the black in the coming financial year ending March 31, 2022 (FY22), driven by the company's new construction division.
In a recent statement, the company said that Kanger has embarked on several exercises to build a resilient business that focuses on growth and sustainability over the past year.
From being a manufacturer of bamboo flooring materials, it has expanded its revenue streams to include the construction segment.
At present, Kanger has secured construction projects which have a total order book of approximately RM1 billion.
"Moving forward, the company will expand its construction business by undertaking building construction, civil engineering and project management contracts as a main contractor or subcontractor.
"We also aim to secure the Grade 7 contractor license from the Construction Industry Development Board (CIDB), which will enable us to undertake construction projects of any value," Kanger executive director Steven Kuah Choon Ching said.
To enhance the company's competitive edge in the construction business, Kanger's acquisition of a 51 per cent stake in building materials supplier Sung Master Holdings Sdn Bhd will positively affect the company in terms of financial performance and operational synergies, it said.
Kuah said the acquisition of Sung Master is earnings-accretive and will bring an immediate positive impact to the company's financial performance.
Meanwhile, Kanger has also announced the proposal for a renounceable rights issue with warrants based on one rights share for every existing share, together with one free detachable warrant for one rights share subscribed.
At an issue price of six per rights share, the exercise could raise gross proceeds of up to RM20.0 million under the minimum case scenario and RM171.7 million under the maximum case scenario.