INFRASTRUCTURE and manufacturing will be the twin engines of growth for Eden Enterprises (M) Bhd and position the company on a strong financial footing for the 2003 financial year.
Its executive chairman Datuk Abdul Rahim Mohamad said property development and Edens traditional restaurant operations and food business would eventually join these two to make up the four pillars of strength for the restructured Eden.
Eden will be a diversified group with a broad earnings base to cushion itself from a downturn in any one particular sector of the economy, Rahim said in a statement yesterday.
Eden, which is undergoing a major restructuring, has released its abridged prospectus in relation to its final phase of the corporate exercise that also involves a capital reduction and injection of assets.
The exercise has been concluded with the injection of new assets into Eden namely independent power producer (IPP) Stratavest Sdn Bhd, 540.67 acres of Gebeng industrial land in Kuantan, Pahang, and a 70% stake in Time Era Sdn Bhd.
Edens growth will be propelled in the near term by infrastructure and manufacturing with both Stratavest and Time Era having good profit track record, said Rahim, who is the new majority shareholder of Eden.
Stratavest, which owns a 60 MW Libaran power station in Sandakan, Sabah, that has an IPP licence for 21 years posted a profit after tax of RM9.33mil for the year ended Dec 31, 2001 while Time Era ended its financial year on Jan 31, 2002 with RM2.54mil.
We are rationalising the existing operations and will discontinue some of the loss-incurring ones as part of the strategy to nurse it back to better financial health, Rahim said. And while we turn around the food and beverage business for it to contribute positively towards group profits, the Gebeng land is just waiting to do its part.
He said the prospects for the Gebeng land were very good. The land was purchased at RM3.22 per sq ft, about 35% discount from the market value of RM5 per sq ft.
The market value of the land, sited in phase III of the Gebeng industrial park, is expected to be further enhanced with the completion of the Karak-Kuantan highway and the Kuantan/Jerangau main road.
The land will provide strong revenue contributions when it is developed as an integrated industrial park with industrial lots, one-and-a-half storey terrace factories, petrol stations and a food court. Bernama