Selangor Dredging Seeks to Clear Unsold Property Inventory
Selangor Dredging Bhd is looking to clear its unsold property inventory at all completed development projects in Malaysia and Singapore, amounting to RM111 million in the current financial year ending March 31, 2020.
Managing director Teh Lip Kim said the target would be driven by innovative marketing activities that are expected to increase demand from buyers in both countries.
"Malaysia's property sector is picking up at a slow rate due to challenging market conditions, coupled with the cautious spending habits of consumers, from an increased cost of living as well as firmer bank policies.
"As such, the group will continue to be innovative in our approaches, which includes embarking on various marketing activities, to convert inventories into sales," she told a media briefing on the group's annual general meeting here, today.
She said to date, the group also has about RM241.90 million in unbilled sales derived from ongoing projects in Singapore and Malaysia.
According to Teh, the group also aimed to increase its iron ore production to 30,000 tonnes per month for the financial year ending March 31, 2020, from 20,000 tonnes per month at the moment.
The group is also hoping to start producing 30,000 tonnes of FE 65 standard iron ore monthly beginning this month, driven by better processing facility operations currently.
"Basically, for us at the moment, we are pushing output as much as possible for the mining sector. At today's price, the FE 65 would be around US$90 per tonne," she said.
Teh said the higher production is driven by the fact that the group's processing facility is now running very smoothly as compared to when it was acquired.
Meanwhile, chairman Eddy Chieng Ing Huong said given the challenging business environment currently, the company would continue to be innovative in its approaches to ensure profitability in the years ahead.
He said the outlook for the coming financial year is also expected to remain challenging in view of adverse market conditions and an property overhang.
Meanwhile, the company aims to launch a development in the future and catering to the millennial market of Subang Jaya.
Beside millennials, Chieng said the target market for this development would be retirees looking to resize and young couples seeking their first home.
On the group's involvement in the mining sector, he said, Selangor Dredging's associate, Fortress Minerals Ltd, had contributed RM7.08 million in net profit to the group for the financial year ended March 31, 2019.
"The listing of Fortress Minerals on the Singapore Exchange also resulted in a net gain of RM11.45 million," he added.