Digistar CEO upbeat about turnaround plan

KUALA LUMPUR: Digistar Corp Bhd group chief executive officer Datuk Wira Lee Wah Chong is “positive and confident” about the company’s turnaround, which is underpinned by its central monitoring system (CMS) business and maiden property venture.

“These two main revenue contributors come on top of our other businesses such as broadcast technology,” he said.

Speaking after the company EGM, he said that it would launch the hi-tech CMS this year, and believed it would be in demand due to people’s need for security devices.

The CMS, known as Panther 911, is expected to generate long-term recurring income for the company from the financial year ending Sept 30, 2014 (FY14) onwards.

Besides that, its serviced apartment project in Malacca, The Heritage, is 70% booked.

For FY13, the information, communications and technology firm made a net loss of RM11mil compared to a profit of RM6mil in FY12.

Going forward, it will roll out its own telecommunication business by partnering other major telcos. However, this was still at the discussion stage, Lee said.

Recall that the company has received three individual licences from the Malaysian Communications and Multimedia Commission to provide network and facilities services.

Its CMS would also benefit from the provision of the network facilities and services, as it served as an avenue for stable Internet connectivity, he added.

The surveillance system can switch to run on 3G, 4G and long-term evolution networks during power disruptions.

As for its property division, he said it was actively looking for land that would give potential returns.

Commenting on how it might possibly benefit from the award of the billion-ringgit digital terrestrial television broadcast (DTTB) contract, he said: “It’s up to the contract winner to give out the sub-contract works.”

In the event Puncak Semangat Sdn Bhd calls for a tender, it would participate in the process, he added. Puncak Semangat won the rights to build and manage the digital infrastructure for DTTB services in the country recently.

Meanwhile, its proposed private placement of up to 105.74 million new shares, representing up to 20% of its issued and paid-up share capital, was approved by shareholders at the EGM. The issue price is to be determined later.

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