KUALA LUMPUR: ETA Group Bhd, formerly Rex Industry Bhd
, plans to diversify into property development, property investment and construction-related activities as it seeks to reduce reliance on its loss-making food and beverage business.
In a filing with Bursa Malaysia, the group said it has incorporated three new subsidiaries to undertake the new segment, namely ETA Development Sdn Bhd, ETA Design & Build Sdn Bhd and ETA Trading Sdn Bhd.
ETA Trading has already begun operations, securing purchase orders of about RM10mil a month from October to December 2025 to supply steel bars for industrial construction projects in Selangor, with a similar run-rate expected in 2026 subject to demand.
The group said it completed the disposal of two loss-making subsidiaries in December 2025, leaving PT Rex Canning in Indonesia as its remaining F&B operation.
“The board anticipates that the property and construction business may contribute 25% or more of the net profits of the group and/ or result in a diversion of more than 25% of the net assets of the group,” ETA said, adding that it will seek shareholder approval at an EGM.
ETA said it is targeting to apply for a CIDB licence in the first quarter of 2026 and aims to secure financing facilities in the same quarter, paving the way for ETA Development and ETA Design & Build to begin tendering for projects.
“The application for the CIDB license is anticipated to be submitted in the first quarter of 2026, and is targeted to be obtained within one month from the submission date,” it added.
The group intends to focus on turnkey and design-and-build industrial developments such as factories, warehouses and logistics facilities and supporting structures.
“In the initial phase, the targeted contract value for construction projects undertaken by ETA Design & Build is expected to range between RM5mil and RM20mil per construction project, with the potential to undertake larger projects as the group builds its operational track record and strengthens its balance sheet,” it said.
ETA added that the move is supported by new key hires with property and construction experience, and expects the diversification to broaden its revenue base and improve earnings visibility over time.
Barring any unforeseen circumstances and subject to all required approvals, the proposed diversification is expected to take effect immediately upon the convening of the EGM.
