KUALA LUMPUR (Oct 26): Stainless steel manufacturer K Seng Seng Corp Bhd’s unit is buying a one-storey factory cum three-storey office building in Klang, Selangor for RM14.7 million to expand its marine hardware business.
In a bourse filing, the group said its 75%-owned subsidiary Koseng Sdn Bhd is buying the property, which measures 5,037 square metres of land area, from ETA Steel Sdn Bhd, a wholly-owned subsidiary of ETA Industries Sdn Bhd.
K Seng Seng said the acquisition, which is expected to be completed by the first quarter of next year, will be funded through bank borrowings and internally-generated funds.
In the first half of financial year ended June 30, 2022 (1HFY22), the group’s net profit dropped 45% year-on-year to RM3.09 million from RM5.6 million in previous corresponding period, despite revenue growing 24% to RM95.14 million from RM76.49 million.
K Seng Seng said profitability was affected by higher input costs arising from volatility in international and domestic metal prices, coupled with the weakening ringgit and increase in minimum wage.
The group is 19.34%-owned by managing director Koh Seng Lee, while other substantial shareholders include non-executive director Yap Chee Kheng, who owns 9.41% stake; and its chief executive officer’s 9.03% shareholding.
The stock closed unchanged at 65 sen per share on Wednesday (Oct 26), giving it a market capitalisation of RM84.24 million.
Source: TheEdge - 27 Oct 2022
