Sep 06, 2017
KUALA LUMPUR: Construction company Vizione Holdings Berhad will acquire an entire equity stake in Wira Syukur (M) Sdn Bhd (WSSB) for RM280mil. The company today obtained the green light at its EGM today to pursue with the proposed acquisition.
The acquisition will be satisfied via the combination of cash and issuance of new ordinary shares of Vizione to be issued at an issue price of RM0.11 per share.
According to the circular on Bursa Malaysia, WSSB has unconditionally guaranteed an aggregate profit after tax contribution of RM82mil for the financial years ending December 31, 2017 and December 31, 2018.
At a media briefing after the EGM, Vizione Holdings managing director Dato’ Ng Aun Hooi in a statement said: “We are thrilled to receive the approvals from our shareholders, which in turn serves as a testament to the company’s business direction.”
“The acquisition of WSSB shall further enhance the construction earnings of Vizione, which have turned around since diversifying in 2015. A foremost priority on our corporate agenda is to enhance shareholders’ value and we are always looking for ways to do this.”
“Post-acquisition, Vizione will continue to tender for more construction projects. Besides that, we will also embark and explore some smaller scale property development project by working closely or joint venture with the landowners."
“It is our intention to have diversified source of income stream for the company. Things are expected to get more exciting in Vizione and I am personally eager to see what this company will deliver in the coming years.”
Ng said the acquisition will not only further enhance the construction earnings of Vizione, but also mitigating the potential conflict of interest between Vizione and his interest in WSSB.
“As a subsidiary of a listed corporation upon completion of the corporate exercise, it will provide access to the capital market for cost effective capital fund raising for WSSB,” he added.
Incorporated in 1996, WSSB is principally engaged in building, civil engineering as well as construction works.
WSSB is a Grade G7 contractor with CIDB and registered with the Masters Builders. WSSB has successfully completed numerous construction projects with a total contract value exceeding RM800mil.
Other news article of the Extraordinary General Meeting and media briefing :
The Malaysian Reserve
Nan Yang Siang Pau
Nikkei Asian Review
The Edge Markets
The Edge Markets 2
The Star Online
The Star Online 2
Jan 22, 2018
The Edge Financial Daily
January 22, 2018 10:06 am +08
This article first appeared in The Edge Financial Daily, on January 22, 2018.
KUALA LUMPUR: Last week was an eventful one for Vizione Holdings Bhd. A day after releasing its quarterly earnings last Monday, its share price surged to 20 sen — the highest level since the group announced its capital reorganisation plan in 2016.
The price rise could be a positive reaction by the market to the group’s results for the second quarter ended Nov 30, 2017 (2QFY18), which saw net profit jump by more than 46 times to RM6.54 million from RM141,000 in 2QFY17. Revenue increased by almost 15 times to RM147.3 million.
The reason for the big rise in profit and revenue is the inclusion of the earnings of Wira Syukur (M) Sdn Bhd, a construction firm which was injected into Vizione as part of a RM280 million reverse takeover exercise that was completed on Oct 9 last year.
In-page MRec Last Wednesday, Vizione — formerly known as Astral Supreme Bhd — proposed a private placement of up to 406.71 million shares. Based on an assumed price of 16.5 sen per share, the placement is expected to raise up to RM67.11 million in gross proceeds, part of which will be used to fund construction projects. To put things into perspective, Vizione’s net cash position (minus borrowings and finance lease liabilities) stood at RM25.9 million as at Nov 30, 2017, while its gearing ratio was at 0.06 times.
Since the placement was announced, Vizione saw a reversal of its post-results positive sentiment. Its shares dropped as much as 17.5% to 16.5 sen last Friday, from its earlier high of 20 sen. Nevertheless, Vizione managing director Datuk Ng Aun Hooi is positive about the group’s prospects for financial year 2018 (FY18) onwards. He said the group is projecting a revenue of about RM800 million for FY18. “Our order book at present stands at RM3.3 billion, and out of this we are expecting to recognise RM800 million as revenue for FY18.
"We have a target to replenish our order book by at least RM1.2 billion this year,” Ng told The Edge Financial Daily. Projects making up this order book include jobs awarded by KL Northgate Sdn Bhd for the construction of apartments, shops and offices worth RM1.12 billion, the construction of office suites for Paragon Hemisphere Sdn Bhd worth RM401 million as well as a RM465 million contract awarded by Hektar Aneka Sdn Bhd for the construction of Rumah Mampu Milik Wilayah Persekutuan. Also making up its order book are contracts awarded by the federal government for the development of public housing schemes in states such as Kelantan, Kedah, Sabah and Terengganu which amount to about RM947 million.
Government jobs are not unchartered waters for Ng. They in fact formed the majority of jobs taken up by Wira Syukur, a company which he formed with two other partners in 1996.
Building affordable homes, including in government housing schemes, have proven to be a recession-proof model, said Ng, pointing out that Wira Syukur had managed to pull through economic downturns such as 1997 to 1998 Asian financial crisis. “It all comes down to the type of product … as long as you are producing the right product, you will be able to sell,” he said.
With Wira Syukur integrated into Vizione, Ng said Vizione would continue its bid for government jobs, though he would like to see the group increase its focus on infrastructure construction jobs rather than property construction jobs.
“Infrastructure jobs have better margins than property construction. So in future we hope to get more of this kind of jobs. We are also exploring the opportunity of potentially going into the concession business,” he said.
The group at present is tendering for both property and infrastructure jobs in Sabah, Kuala Lumpur and Negeri Sembilan. According to Ng, the group’s tender book size is about RM2.9 billion. Ng said he is cognizant of the challenges facing construction players amid rising costs.
“Steel prices are quite high at the moment but at the same time cement prices have been dropping. But at the end of the day it is about value engineering — we are a hands-on contractor in the sense we don’t outsource jobs. So we have the in-house efficiency when it comes to reducing wastage and controlling costs,” he said. He added that the fact that Wira Syukur’s — and now Vizione’s — forte is in the construction of affordable homes would eliminate the need for imports of materials which are usually needed for high-end housing projects.
Looking at Vizione’s 2QFY18 financials, the net profit excluding one-off expenses such as corporate exercise and employee share option scheme expenses amounts to RM9.17 million, resulting in a net profit margin of 6.2%. Imputing an expected revenue of RM800 million for FY18 and a net profit margin of 6.2%, and assuming a maximum enlarged share capital of 4.47 billion shares post placement, Vizione could be looking at a projected FY18 forward price-earnings (PE) of 14.9 times based on its closing price of 16.5 sen last Friday.
The FY18 forward PE valuation is higher than that of some construction players such as Pesona Metro Holdings Bhd (nine times) and Mitrajaya Holdings Bhd (6.3 times), but lower compared with others like Gabungan AQRS Bhd (17.5 times). In terms of its order book size, Vizione’s RM3.3 billion as at last Tuesday seems to be on a par with, or higher than, its peers.
Based on the latest available information on Bursa Malaysia, Pesona Metro’s order book stood at RM1.6 billion as at Sept 30, 2017. Mitrajaya reported an order book of RM1.69 billion as at Sept 30, 2017 and Gabungan AQRS’s order book amounted to RM2.58 billion as at Nov 16, 2017.
Vizione shares have already sparked some interest among analysts. It is understood that the group held a briefing for analysts of major research firms last week. If Vizione can deliver on its earnings and keep its margins in check, it could be one of the construction stocks to look out for in 2018.
Apr 19, 2018
Erika Benjamin / theedgemarkets.com
April 19, 2018 21:42 pm +08
KUALA LUMPUR (Apr 19): Vizione Holdings Bhd's net profit surged 53 times to RM8.06 million in the third financial quarter ended Feb 28, 2018 (3QFY18) from RM152,000 a year ago, mainly due to contribution from the construction works undertaken by its newly-acquired unit Wira Syukur (M) Sdn Bhd.
Wira Syukur has an order book of RM3.75 billion, which will contribute to the group’s earnings visibility over the next several years.
This resulted in Vizione posting a higher earnings per share of 23 sen in 3QFY18 from 2 sen a year ago. Quarterly revenue also jumped more than nine times to RM133.86 million in 3QFY18 from RM14.61 million in 3QFY17.
For the cumulative nine months (9MFY18), the group's net profit rose more than 36 times to RM15.14 million from RM415,000 a year ago, while revenue increased nine times to RM302.49 million from RM33.05 million in 9MFY17.
On prospects, Vizione said with the acquisition of Wira Syukur in October last year, the board is confident that the group's performance will be further strengthened with the enlarged group.
"The group will continue to seek and secure new business opportunities and expand its existing business in the construction and development sectors," said Vizione in a filing with Bursa Malaysia today.
"The group is also in its preliminary stages of venturing into the property development sector with the recent acceptance of a letter of intent from Pan Sejati (M) Sdn Bhd to pursue through a joint venture, the development of 3,800 affordable homes in Putrajaya.
"The group foresees that it will be able to leverage its expertise as an affordable homes contractor to deliver additional value to its shareholder through its maiden venture into property development," it added.
Barring any unforeseen circumstances, Vizione said it is cautiously optimistic on its overall businesses moving forward and will continue to hone its operational strengths to achieve sustainable profitability growth in the market.
Vizione shares closed unchanged at 14.5 sen today, with 13.01 million shares done, bringing it a market capitalisation of RM517.37 million.
Apr 13, 2018
Friday, 13 Apr 2018
1:53 PM MYT
KUALA LUMPUR: Vizione Holdings Bhd has secured a road contract worth RM137.13mil from Vertice Construction Sdn Bhd. In a filing with Bursa Malaysia, Vizione said its wholly-owned subsidiary, Wira Syukur (M) Sdn Bhd had accepted a letter of award from Vertice Construction to upgrade the Federal Road 12 (FR 12) from Gambang, Pahang to Segamat, Johor – Phase 1. The date of completion shall be 13 months commencing from April 16 to April 30, 2019.
Vizione said the award would further increase and enhance the existing order book of the group.
“Barring any unforeseen circumstances, this award is expected to contribute positively to the earnings and earnings per share of the group for the next one financial year as the earnings would be realised in stages over the tenure of the subcontract based on the progress of the project.
“Any profits attributable to the group would be realised in stages over the tenure of the subcontract based on the progress of the subcontract,” Vizione said.
Apr 13, 2018
(吉隆坡13日訊) 穩固控股公司 ( VIZIONE，7070，主要板工業 ) Vertice 公司 ( VERTICE，7240，主要板貿服 ) 頒總值1億3713萬令吉道路工程合約。
穩固控股公司發文告指出，獨資子公司 Wira Syukur ( 大馬 ) 私人有限公司收到來自 Vertice 公司旗下 Vertice 建築私人有限公司所頒發的工程意向書。
在這項價值1億3713萬令吉的合約下，Wira Syukur ( 大馬 ) 將為通往彭亨甘孟至柔佛昔加末的聯邦公路改造工程，提供材料、勞動力、以及必要的工具和設備。
Wira Syukur ( 大馬 ) 將從下周一 ( 16日 ) 展開這項為期1年1個月的計劃，相信可正面貢獻穩固控股公司財務表現。
Apr 30, 2018
We serve our customers and business partners with quality, efficiency and reliability. We attempt to build the principles of sustainable development into different aspects of our business. This means doing business with integrity, aspiring to the highest levels of standards of corporate management, safety and health, managing our environmental impacts, and committing to deliver on our full range of social responsibilities.
As a member of the community, we believe that CSR forms an integral part of the Group’s business. Over the years, we have committed to creating a better living environment for the society with quality and sustainability.
May 21, 2018
The Edge Financial Daily
May 21, 2018 08:55 am +08
KUALA LUMPUR: Vizione Holdings Bhd, a niche player in the affordable housing sector, finds its business strategy to be in tandem with the new government’s promise to build one million affordable homes across the country within two terms of its administration.
Vizione managing director Datuk Ng Aun Hooi believes the group’s expertise in affordable housing development will enhance its competitiveness in bidding for housing projects under the new government.
“We believe we can remain competitive in our niche market, which is in the construction of affordable homes … in line with the Pakatan Harapan government’s promise to build affordable homes,” Ng said in an interview with The Edge Financial Daily.
Vizione has an order book of RM3.75 billion to date, with almost half of its undertakings comprising government housing projects.
Aside from government projects, the group also has a long-standing relationship with the private sector, with clients such as Sunway Group and Gardenia Bakeries (KL) Sdn Bhd.
“As we now have a new government, they may need time to stabilise. We are lucky that we have a big order book as it may take time for government tenders to be called, and for us to replenish government housing contracts.
“For the time being, in order to [expand] our order book, we may need to secure more projects from the private sector, as well as from my own private developments,” he said.
Ng is the chairman of two private property development firms, namely Midlands Edu City Sdn Bhd and KL Northgate Sdn Bhd.
Meanwhile, Ng corrected a possible public perception that Vizione is a “government-linked stock” as most of its government housing projects were secured when Barisan Nasional was in power.
He stressed that he is “purely a businessman” and that the group’s business is apolitical.
“It is very hard for me to immediately correct that [government-linked] perception. What we do hope is the public look at the numbers that we deliver. We have an order book of RM3.75 billion that will last us until 2021,” he said.
Ng also reassured that the RM465 million Federal Territories Affordable Housing (Rumawip) project in Gombak secured by the group, which forms part of its order book, will proceed as planned.
“The Rumawip project in Gombak is already enforced and sales are 95% done, and we have completed about 35% of the foundation [works],” he said.
Ng pointed out that Vizione is not involved in the recently highlighted sale of 64 parcels of land in Kuala Lumpur to property developers from 2013 to 2018, which was done under the purview of former federal territories minister Datuk Seri Tengku Adnan Tengku Mansor.
Kepong member of parliament Lim Lip Eng lodged a report with the Malaysian Anti- Corruption Commission last week, calling for an investigation into the parties involved in the 64 land deals, which he claimed were mostly done without an open tender and at below market value. Lim said less than half of these plots of land were for public housing projects such as Rumawip, while a majority were for high-end residential projects.
“We have no issues on land subject matters; none of Vizione’s projects are on that list,” stressed Ng.
Ng, who hails from Bukit Mertajam, Penang, also has an interest in Consortium Zenith Construction Sdn Bhd, the special-purpose vehicle company which is undertaking the RM6.3 billion Penang undersea tunnel and Outer Ring Road (ORR) project.
It is understood that Vizione was in the midst of participating in one of the packages of the ORR, prior to the project being put on hold earlier this year.
“We shall await the new [Penang] chief minister and his team on the direction of the Penang ORR. Vizione believes the project should proceed again following GE14 (14th general election), and will participate in any tender for this project,” he said.
Meanwhile, Ng said the government’s recent move to zero-rate the goods and services tax (GST) before moving into the sales and services tax (SST) regimen is a welcome move.
“The GST did impact the construction industry; the burden on businesses was much heavier compared to the SST,” he said.
As for its financials, Vizione reported a net profit of RM15.14 million for the nine-month period ended Feb 28, 2018, which was more than 36 times the RM415,000 recorded in the previous corresponding period. Revenue rose by more than ninefold to RM302.49 million.
The reason for the big rise in profit and revenue was the inclusion of earnings of Wira Syukur (M) Sdn Bhd, a construction firm which was injected into Vizione as part of a RM280 million reverse takeover exercise that was completed in October last year.
Vizione’s share price did not move as much as that of other construction counters last Monday, the first trading day after the change in government. The stock dropped to as low as 11 sen that day (15% lower than its close of 13 sen on May 8, a day before GE14) before closing at 12 sen.
At the end of trading for the week last Friday, the counter closed at 13 sen, with a market capitalisation of RM480.4 million.
Jul 25, 2018
Billy Toh / theedgemarkets.com
July 25, 2018 19:33 pm +08
This article first appeared in The Edge Markets, on July 25, 2018.
KUALA LUMPUR (July 25): Vizione Holdings Bhd posted another quarter of record earnings as net profit soared by 60.4 times to RM11 million in the fourth quarter ended May 31, 2018 (4QFY18) compared to RM183,000 a year ago, mainly due to construction works undertaken during the period by a newly acquired subsidiary.
The group also saw revenue increase by about 6.9 times to RM110.7 million in the quarter from RM16.1 million in 4QFY17.
For the full financial year ended May 31, 2018 (FY18), Vizione saw net profit grow by 43.8 times to RM26.2 million from RM598,000 in the previous year.
The group's FY18 revenue is 8.4 times higher at RM413.2 million compared to RM49.1 million in FY17.
On the group's prospect moving forward, the note filed with Bursa Malaysia said the group envisages greater opportunities in the wake of the new government's objective in building more affordable homes in the short to medium term as outlined in its election manifesto to construct one million affordable houses within two terms of its administration.
"With the group's recent acquisition of Wira Syukur Sdn Bhd (WSSB) in October 2017, the group is confident that it will be strategically positioned to benefit from the new government's plans of constructing more affordable residences amongst Malaysians, grossly due to WSSB's enormous experience in the low cost and affordable housing sector through its employment of cost effective building methodologies," Vizione said.
It added that the group's current order book stood at a commendable RM3.41 billion, which will keep Vizione busy until 2022.
The filing also noted that the group will continue to pursue new business streams within the construction and property development sector as part of its vision to focus on its core strength in construction industry and to synergise with the property development projects.
At closing, Vizione's share price was unchanged at 14.5 sen with about 6.8 million shares traded, giving it a market capitalisation of RM535.9 million.
Aug 02, 2018