Encorp to bank on property development projects on Felda land

In its 2018 annual report, Encorp said it would be capitalising on its existing property portfolio. (File picture shows Encorp staff explaining some of their products to interested customers.)

PETALING JAYA: Encorp Bhd, which is owned by Felda Investment Corp (FIC), will drive its revenue growth by looking into property development projects on Felda’s landbank in strategic locations throughout the country.

FIC holds a 64.38% stake in Encorp.

In its 2018 annual report, Encorp said it would be capitalising on its existing property portfolio.

“We will drive future growth by leveraging on our relationship with landowners to access their landbanks in strategic locations with a view of identifying partnerships, as well as exploring with our holding company, Felda, to build a pipeline of property development projects,” it added.

Felda had acquired a 49.5% stake in Encorp for RM239.72mil or RM1.55 per share in 2014.

Felda and FIC ended up with 72.27% in Encorp after forking out RM306.11mil.

Encorp, which has been suffering losses in the last two quarters, aimed to return to the black by embarking on a transformation programme. In the fourth quarter of the last financial year, Encorp’s losses narrowed to RM9.11mil from RM27.13mil in the corresponding quarter previously.

Although the company did not declare any dividends for the financial year ended Dec 31, 2018 (FY18), it planned to do so in the near future.

Encorp’s focus is on growing revenue from its existing property porfolio in Shah Alam.

“Within our existing property portfolio, our focus is on launching new properties in Encorp Cahaya Alam, namely Clover and Lily,” it said.

On its Bukit Katil Township in Melaka, the property developer said it would finalise the development strategy and master plan to boost returns.

In FY18, Encorp obtained the planning permission for the Bukit Katil development.

Going forward, Encorp said the company is committed to its turnaround journey by prioritising revenue growth and enhancing operational efficiencies to drive its business goals in the long-term.

“Underscoring all our future efforts is our unrelenting commitment to offer innovative products to drive Encorp’s value proposition in the market place, and ensure strong customer relationships,” the company added.

For FY19, the company is cautiously optimistic about generating medium-term profitability through the strategic plan of revenue growth and enhancing operational efficiencies.

“Despite the challenging market environment expected for the year ahead, we remain cautiously optimistic that our focused efforts would result in the successful completion of our turnaround journey.

“We are also setting in place a strong foundation to ensure our sustainable long-term business growth.

“We will maintain a sharp focus on our revenue growth strategy, while improving our operational efficiency within our optimised business model,” the company pointed out.