Jaycorp proposes diversification into construction, property development

PETALING JAYA: Furniture maker Jaycorp proposes to diversify into the construction and property development.
It told in a filing with the stock exchange that it anticipates the construction and property development segments may in the future contribute 25% or more of the group's net profit.
Currently, it is principally involved in the manufacture and sale of furniture as well as other activities such as packaging, processing of wood and renewable energy.
On January 6, Jaycorp formed a joint venture company Jaycorp Engineering and Construction Sdn Bhd (JECSB) to take part in general construction and civil engineering works. It secured the first construction project from Solid Destiny Sdn Bhd for the construction of a seven-storey shop-cum-office in Likas, Sabah.
JECSB intends to actively bid for more construction contracts in the near future.
In addition, Jaycorp owns about 396 acres of land in Bongawan, Sabah via its 60%-owned indirect subsidiary, Bongawan Solo Sdn Bhd, part of which has been designated for integrated tourism development.
The group said the proposed diversification will enable it to diversify into new viable businesses and therefore, reduce the reliance on its current core business.
"By providing the Jaycorp group with additional streams of income, the proposed diversification is expected to contribute positively to the Jaycorp group's financial performance and in turn, improve Jaycorp's shareholders' value."
Its share price was unchanged at RM1.50 on Friday, with some 154,000 shares changing hands.