FCW to launch maiden property project in third quarter 2016

KUALA LUMPUR: FCW Holdings Bhd, a contract manufacturing company, which is diversifying into property development, aims to launch its maiden property project with a gross development value (GDV) of RM1.5 billion in Jalan Segambut, in the third quarter of next year.
“We have already obtained approval for the master layout plan on that. And we are targeting to launch phase one by the third quarter next year,” FCW non-executive director Anderson Thor Poh Seng (pix) told reporters after its AGM yesterday.
“Phase one would be about RM500 million in GDV. There will be about 800 to 900 units of residential apartments,” he added, noting the development will comprise three phases.
Thor said he expects the project, called 368 Residences to start contributing to the company’s revenue from the financial year ended June 30, 2017 onward.
In 2013, FCW entered into a 50:50 joint venture with IJM Land Bhd, the property arm of conglomerate IJM Corp Bhd to develop the 16-acre piece of land in Jalan Segambut into mixed residential and commercial property projects.
FCW acquired the land from its sister company, Goh Ban Huat Bhd, in 2007 for RM86 million cash.
“I guess in FY16 we will not see very much revenue increase from FY15. It will probably sustain around that level. We hope to see more contribution in FY17 with the launch of our property project,” Thor said.
For the first quarter ended Sep 30, 2015 (Q1FY16), the company recorded a net loss of RM1.16 million, compared with a net profit of RM50.28 million in the previous corresponding quarter.
Revenue declined 4.5% to RM6.32 million, against RM6.62 million last year, mainly due to a decrease in export sales.
Thor said the net loss recorded during the first quarter was mainly due to unrealised foreign exchange loss as a result of the depreciating ringgit against the US dollar under its associate company, namely Fujikura Federal Cables Sdn Bhd.
“Our manufacturing business was also affected by the introduction of the Goods and Services Tax (GST). GST has affected consumer sentiment as well as demand on the personal care products, and therefore sales in that particular division has dropped slightly,” he added.
FCW is involved in contract manufacturing and wholesaling of cosmetics, toiletries and household products, while its associate company trades telco equipment, cables and wires.