Yong Tai director says turnaround plan on track

by **Cals** Tue 04 Aug 2015, 19:17

Yong Tai director says turnaround plan on track

MELAKA: Yong Tai Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) executive director Ng Jet Heong is confident that the loss-making garment maker will return to the black for the financial year ended June 30, 2015 (FY15), helped by its property development venture.
For the nine months ended March 31, 2015, it posted a net profit of RM1.07 million, compared to a net loss of RM1.91 million a year ago.
“Gone are the days when Yong Tai used to report losses. We will improve our bottom line quarter by quarter. I am very confident that we are going to be profitable this financial year (FY15), although you will only see big action and big profits from FY16,” Ng told a news conference after signing five separate memorandums of understanding (MoUs) with PTS Impression Sdn Bhd, Yuten Development Sdn Bhd, Terrawest Resources Sdn Bhd, Land & Build Sdn Bhd and Admiral City Sdn Bhd, respectively, here yesterday.
The proposals provide Yong Tai with five potential property developments carrying a combined gross development value of some RM7 billion over the next eight years in Melaka, the Klang Valley and Johor.
Ng said the MoUs are in line with Yong Tai’s expansion plans to grow its property development business, and that it will allow the group to “negotiate with the parties involved and work together in executing definitive agreements for the proposed acquisitions and joint ventures”.
Commenting on its garment-making business, Ng said that it is loss-making due to stiff competition in the garment industry, particularly in China and Vietnam. “As of now, the composition of our business is 60% property development and 40% manufacturing. Hopefully, we will see an 80:20 percentage contribution for FY16,” Ng said.
Meanwhile, the five potential projects include a tourism and mixed development in Kota Laksamana, Melaka, a luxury serviced apartment project in Jalan U-Thant, Kuala Lumpur, a mixed development comprising a tower block of small office versatile office (SoVo) units and a hotel tower in Puchong, Selangor, as well as a mixed development comprising retail and SoVo units, hotel and office suites in Johor Baru, Johor.

This article first appeared in digitaledge Daily, on August 4, 2015.