Kuala Lumpur, May 25: Hektar Asset Management Sdn. Bhd., the Manager of Hektar Real Estate Investment Trust (“Hektar REIT”), has announced the financial results for the first quarter that ended 31 March 2023 (“1Q 2023”).
During this period, Hektar REIT achieved revenue of RM28.9 million, with a Net Property Income (“NPI”) of RM15.2 million.
The higher utility cost, resulting from the electricity tariff hike due to adjustments in the Imbalance Cost Pass-Through (“ICPT”) mechanism, and an increase in minimum wages, impacted the NPI.
The Realised Net Income for 1Q 2023 reached RM9.2 million, primarily due to higher finance costs in line with the Overnight Policy Rates (“OPR”) increase by Bank Negara Malaysia.
Notably, Hektar REIT exhibited a robust NPI Margin of 52 percent, indicating a healthy financial performance across its Assets Under Management (“AUM”).
Furthermore, prudent financial management contributed to an improved Gearing Ratio of 44.3 percent.
The portfolio performance of Hektar REIT showcased significant improvement, with portfolio occupancy rising to 83.8 percent.
Mahkota Parade & Wetex Parade witnessed a tremendous increase in occupancy rates, exceeding 90 percent, while Kulim Central recorded close to 96 percent occupancy.
Additionally, the quarter reported positive rental reversion, with 78 new or renewed tenancies representing 14.0 percent of the total Net Lettable Area (“NLA”), equivalent to 287,298 sq. ft.
Despite the challenging retail environment, the management remains proactive in boosting occupancies through tenant retention, strategic mall reviews, and collaborations with innovative and creative retailers.
In terms of visitor traffic, all malls within the portfolio experienced an uptrend, reflecting a resurgence in shoppers’ confidence.
The overall visitor footfall count for 1Q 2023 increased to 5.6 million, a significant surge of 33 percent compared to the same quarter in the previous year.
To serve the communities in the areas where their shopping centers operate, the management continues to intensify marketing events, activities, and Corporate Social Responsibility initiatives.
Johari Shukri Jamil, Chief Executive Officer of Hektar Asset Management Sdn. Bhd., expressed satisfaction with the retail activities in the quarter, driven by festive occasions.
Emphasizing Hektar REIT’s positioning as a neighborhood and community mall, he highlighted the ongoing efforts to improve the overall tenancy mix and occupancies.
The upcoming Repositioning exercise at Subang Parade aims to remix tenancies by introducing new tenants that complement the existing offerings and meet patrons’ expectations.
The focus remains on implementing strategies to enhance visitor footfall, increase customer spending, and deliver sustainable returns to Unitholders.
The committed overall portfolio occupancy of 85.4 percent is anticipated to materialize in subsequent quarters, supported by ongoing discussions with prominent tenants to enhance the overall occupancy and tenancy mix.
Meanwhile in Kuching, civil engineering specialist Sarawak Consolidated Industries Berhad (“SCIB” or the “Company”) reported its financial results for the third quarter ended 31 March 2023 (“3Q FY2023”).
The Group achieved a revenue of RM32.4 million, compared to RM37.5 million in the corresponding quarter of the previous financial year.
The quarter under review recorded a profit before tax (“PBT”) of RM0.2 million, a significant improvement from a loss before tax (“LBT”) of RM2.0 million in 3Q FY2022.
For the nine-month period ended 31 March 2023 (9M FY2023), SCIB generated RM98.7 million in revenue, compared to RM102.2 million in the corresponding period of the previous financial year.
The LBT narrowed to RM3.5 million in 9M FY2023, improving from the LBT of RM6.0 million in 9M FY2022.
The manufacturing division, responsible for producing precast concrete and Industrialised Building System (“IBS”) building materials, recorded a revenue of RM23.2 million in 3Q FY2023, accompanied by a PBT of RM2.7 million.
In 9M FY2023, the manufacturing segment achieved a cumulative revenue of RM68.9 million, compared to RM64.9 million in 9M FY2022.
The PBT for the manufacturing division in 9M FY2023 stood at RM4.8 million, a notable improvement from RM0.97 million.
In the engineering, procurement, construction, and commissioning (“EPCC”) division, SCIB reported revenue of RM9.2 million in 3Q FY2023, with a PBT of RM0.009 million.
The EPCC segment achieved a cumulative revenue of RM29.4 million in 9M FY2023, compared to RM36.6 million in 9M FY2022, with a cumulative LBT of RM1.44 million, improving from LBT of RM1.74 million.
Rosland Othman, Group Managing Director of SCIB, attributed the quarter’s revenue contribution to increased sales of foundation piles.
Additionally, the improvement in PBT was mainly driven by margins from the sales of precast concrete products.
He highlighted the Company’s focus on leveraging its EPCC expertise to actively pursue small-to-mid-sized construction projects across Malaysia, supported by the manufacturing division’s ability to supply precast and IBS building materials.
As of the end of 3Q FY2023, SCIB’s order book stood at a cumulative contract value of RM495.3 million. The Company also announced the appointment of Toh Beng Suan as an independent non-executive director.
With her extensive experience as a lawyer in advising on infrastructure projects and construction contracts, her addition to the board is seen as a move towards inclusivity and strengthening decision-making within the Company.
Finally in Shah Alam, Synergy House Berhad (“Synergy House” or the “Group”), a cross-border e-commerce seller and furniture exporter of ready-to-assemble (“RTA”) home furniture, released its financial report for the first quarter ended 31 March 2023 (“1Q FY2023”).
The Group achieved a revenue of RM51.6 million from sales in both the business-to-business (“B2B”) and business-to-consumer (“B2C”) market segments.
The profit before tax for 1Q FY2023 reached RM3.6 million, with a profit after tax of RM2.6 million.
This report marks the first interim financial report announced by Synergy House in compliance with the listing requirements of the ACE Market of Bursa Malaysia Securities Berhad, thus lacking comparative figures for 1Q FY2023.
In 1Q FY2023, the B2B segment contributed approximately 53.10 per cent of the Group’s total revenue, amounting to RM27.4 million.
Meanwhile, the B2C segment accounted for approximately 46.90 per cent of the Group’s total revenue, generating RM24.2 million.
The United States of America emerged as the largest market for Synergy House, contributing around 49.47 per cent of the revenue in 1Q FY2023.
Tan Eu Tah, Executive Director of Synergy House, highlighted the long-term potential in the B2C market segment for RTA home furniture.
The Group is currently in market expansion mode, with a focus on aggressive investment in the B2C sales channel for wider market outreach.
In 1Q FY2023, Synergy House achieved a total B2C revenue of RM24.2 million, which represents close to 50 per cent of the Group’s total B2C revenue for the full financial year ended 31 December 2022.
Teh Yee Luen, Executive Director of Synergy House, emphasized the allocation of resources and funding to build the brand name, reputation, and reviews on e-commerce platforms.
Aggressive advertisements and promotions on these platforms are expected to yield long-term benefits. The Group sees significant potential in the global e-commerce furniture market and continues to sow the seeds for future B2C growth.
Synergy House is currently raising RM34.4 million through the issuance of 80.0 million new shares at an IPO price of RM0.43 per share.
The proceeds from the IPO are expected to support the Group’s future growth and expansion plans. For the financial years ended 31 December 2019, 2020, 2021, and 2022, Synergy House recorded revenues of RM111.5 million, RM122.9 million, RM184.3 million, and RM194.1 million, respectively.
Notably, the B2C segment exhibited substantial growth, with sales increasing from RM1.99 million in FY2019 to RM49.6 million in FY2022, representing a compound annual growth rate of 192.17 percent.
Kenanga Investment Bank Berhad is serving as the Principal Adviser, Sponsor, Underwriter, and Placement Agent for Synergy House’s IPO exercise.
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