New project in the pipeline

Artist’s impression of Weida’s Urbana Residences at Ara Damansara targeted to be launched by October.

KUCHING: Sarawak-based Weida Bhd is planning to undertake a third property development project in peninsular Malaysia.

The third project involves the development of two parcels of land in Cheras, Kuala Lumpur which is currently in the planning stage, according to company group executive chairman Datuk Lee Choon Chin.

He said the proposed development would be carried out on a joint-venture basis with Mutiara Sdn Bhd, and that the project has an initial gross development value (GDV) of an estimated RM1.2bil.

On Weida’s maiden project Urbana Residences – a 15-storey upmarket service apartment – in Ara Damasara, Petaling Jaya, Lee said the project was on track for completion and hand over to the buyers by October, this year.

Urbana Residences, which has a gross development value (GDV) of RM231mil, houses 356 apartments.

Lee said Weida’s second property project – Ardena in Mont’ Kiara – had its planning and design works completed. The high-rise residential development has a GDV of RM360mil.

“Final refinement to suit the current trend and demand is in progress.

“In view of the generally quiet property market currently prevailing, we will await a more opportune time for the launching of these (two) projects,” he added in the company’s newly released annual report.

On the group’s telecommunication infrastructure business, Lee said Weida had established itself as one of the leading turnkey builders of telecommunication towers in Sabah and Sarawak, and it had completed and handed over 434 towers.

The group is currently maintaining 244 towers, which have been rented out to service providers, including Maxis, Digi and Celcom.

Lee said the group was constructing nearly 100 of the proposed 1,000 telecommunication towers in several phases over three years throughout the country.

The project is funded with RM1.5bil allocation by the government.

He said the group had completed most of these towers and handed over to the authorities as of March 31, this year.

On Weida’s core business in manufacturing of polyethylene-based building materials, he said the company had remained as the undisputed market leader in Malaysia, with a dominant position in Sarawak and Sabah.

“Growing strongly into the 21st century as a manufacturer of engineering products and solutions in the areas of water and wastewater infrastructure, Weida is a leading provider of modern environmental engineering products and solutions in the areas of water and wastewater infrastructure, products and services for both urban and rural applications.”

Lee said the group owned five manufacturing plants in Sarawak, Sabah and peninsular Malaysia and a sixth in the Philippines.

The group, he added, had been supplying its products to sizable government-funded projects, like the provision of filtered water to the rural population and affordable homes, setting up of universities and institutions of higher learning, provision of better roads, jetties and landscaped recreational parks as well as agriculture and aquaculture projects.

He said the construction of the Pan Borneo Highway was expected to offer attractive markets for Weida’s products including those for public utilities along the highway. These products range from water pipelines to electrical power conduits, telecoms conduits and towers to drainage culverts.

“Upon opening up subsequently, it will spin off many new residential, commercial and industrial developments in both Sabah and Sarawak where Weida is the dominant manufacturer of polyethylene engineering products for water and wastewater applications.

“Under rural water, we will continue to supply and install rainwater harvesting with filtration systems in financial year ending March 31, 2017. A new system which will be used to resolve certain technical constraints will be introduced to the market.

“Weida will continue to strive for breakthroughs in terms of new and innovative products and systems, manufacturing process as well as market and business alliances.”

Reviewing the company’s performance for financial year ended March 31, 2016 (FY2016), Lee said Weida group’s pre-tax profit surged to RM42.5mil on turnover of RM384.3mil as compared to RM29.2mil and RM333.8mil respectively in FY2015.

He said the group’s financial position remained healthy, with total equity attributable to company owners of RM400.6mil and cash of RM98.5mil.

The company has recommended a first and final single-tier dividend of 3 sen per ordinary share.