KUALA LUMPUR: Meta Bright Group Bhd will diversify its leasing and financing business segment into the provision of operating leases for machinery and equipment.
In a filing with Bursa Malaysia, the company said the proposed diversification is expected to contribute 25% or more of the net profit in the longer term.
Executive director Derek Phang Kim Liew said that given the direct impact of Covid-19 in the hospitality segment, the company has been looking to enhance its earnings base, in addition to turning around its core business segments.
“By leveraging our existing experience in the money lending business, we believe that entering into the leasing business is a de-risked move that will expand the scope of profitable activities in our leasing and financing segment,” he said.
The diversification is viewed as a lower-risk move, given that Meta Bright could leverage its experience in assessing the creditworthiness of potential customers garnered from its existing business loan operations.
Furthermore, Meta Bright management’s own experience and business relationships in heavy machinery end-user businesses such as construction and mining will afford it a headstart in business development for this diversification effort. — Bernama
