Signature eyes RM150mil jobs in Johor Baru
PETALING JAYA: Wardrobe provider, distributor and retailer of modular kitchen systems Signature International Bhd (SIB) is targeting to bag some RM150mil worth of projects in Johor Baru, as it actively tenders proposals to major property developers in the region.
Among them are China-based real estate developers Country Garden Properties, Guangzhou R&F Properties Co Ltd and Greenland Group, as well as local players Tropicana Corp Bhd and Encorp Bhd, Signature Kitchen project director Mohd Anwar Abdul Wahab told StarBiz.
“We are in various stages of our bids across the board.
“Some have been completed, like UEM Sunrise Bhd’s Ujana Executive Apartment @East Ledang in Nusajaya, Johor.
“Our tenders are in various stages – but overall, we are still in the preliminary stages of our bids, so the results will vary. We will know within the next year or two.”
As of Dec 31, 2014, SIB’s order book stood at RM200mil. It is tendering for RM500mil worth of new jobs across the country.
“The company is bullish on the retail division, which contributed 30% to group revenue in financial year 2014,” Mohd Anwar said.
Meanwhile, SIB is also in the preliminary stages of exploring opportunities in the 1Malaysia Housing Programme (PR1MA) programme.
“We are considering this avenue as PR1MA projects would be able to provide volume to our business. However, we do not want to dilute our brand as our kitchen fixtures are a luxury product, so we are still exploring. The possible future contribution from this avenue has yet to be discussed,” Mohd Anwar said.
It has been reported that PR1MA is targeting to build some 500,000 low- to medium-cost houses by end-2018, bringing an estimated potential total contract size of some RM200mil, CIMB Research senior analyst Nigel Foo said.
“We have not assumed any potential earnings from this project yet. As for maintaining double-digit earnings per share growth for more than three years, we believe this is possible if there is no construction delay by the main contractors,” Foo said.
“The overall property market peaked in 2013, but SIB’s earnings are only expected to peak in three to four years. The installation of kitchen units is done just before the property is delivered to the buyer,” Foo said.
For the first quarter ended Sept 30, 2014, SIB posted a net profit of RM6.67mil, 3.34 times higher than the RM2mil of last year.
Revenue came in at RM59.3mil, up 119% from RM27mil last year.
In a filing with Bursa Malaysia, SIB attributed the significant increase in sales to the project division of the kitchen and wardrobe segment, where a higher order book from the projects secured had led to more revenue being recognised from jobs delivered.