PETALING JAYA: Hextar Capital Bhd (HCB) is optimistic that its expansion into the construction business will reap benefits in the near future.
Chairman Datuk Mazlin Md Junid said: “While our expansion into the construction sector is still early, it has already made a positive contribution to the group’s revenue in the financial year ended Sept 30, 2024 (FY24).
“We will be pursuing new projects in the future to further strengthen our revenue base and market presence,” he said in the company’s annual report.
HCB’s core businesses include manufacturing, network engineering, telecommunication network infrastructure solutions and power generation and renewable energy.
The group announced in April last year that it plans to expand into construction and project management services, adding that it aims to capture new opportunities and enhance its footprint in the construction and civil engineering sector.
In a statement following the announcement, managing director Johnson Chang said the proposed diversification aligned with HCB’s long-term plan to seek additional engineering, procurement, construction and commissioning opportunities and to expand its revenue streams.
Meanwhile, Mazlin said the company’s strategic move into the money lending business will open up a new avenue for revenue growth.
“According to Maybank Investment Bank, the money lending business is expected to continue growing, with a projected growth of 5.5% in 2025, underpinned by strong demand from both the household and business segments.
“We are confident that this segment will continue to expand in the coming years.”
In December 2023, HCB announced that it obtained a money lender licence issued under the Moneylenders Act 1951 and the Moneylenders (Control and Licensing) Regulations 2003 from the Housing and Local Government Ministry.
Looking ahead, Mazlin believes that the group’s commitment to delivering high-quality products and services will contribute to the long-term success of the group.
“In the face of growing business competition, coupled with the government’s initiatives to transform Malaysia into a digital economy, digital networks are increasingly recognised as critical tools for enhancing operational efficiency and fostering innovation in business processes.
“HCB is well-positioned to seize the emerging opportunities from 5G development and the rising demand for our infrastructure, connectivity and data centre services.”
For FY24, HCB reported a net loss of RM3.3mil on a revenue of RM117.65mil.
There was no comparative for the quarter due to the company’s change in the financial year-end from March 31 to Sept 30.
In a filing with the local bourse on its FY24 performance, HCB said the net loss was following the recognition of the amortisation of intangible assets arising from the initial assessment of purchase price allocation.
The group said this was in relation to the acquisition of T&J Engineering Sdn Bhd amounting to RM26.2mil.
Additionally, HCB said the telecommunication network segments contributed RM59.5mil or 51% to group revenue, followed by the manufacturing, engineering services and trading segment, which contributed RM48.3mil or 41% to the company’s revenue.
HCB said its fiber optic business continues to play a crucial role in the group’s operations.
“While facing market challenges, we remain steadfast in leveraging our expertise to address industry demand and contribute to Malaysia’s evolving digital landscape.
“Looking ahead, HCB remains committed to exploring additional opportunities that align with our vision of sustainable growth and diversification. As we continue to strengthen our existing portfolio, we are also poised to seize new opportunities that will drive value creation and enhance shareholder returns,” the company said.