Property to contribute over 90% of FY16 net profit, says Ewein

PETALING JAYA: Ewein Bhd's subsidiary Ewein Zenith Sdn Bhd, which obtained the advertising permit and developer licence (APDL) for its City Of Dreams project last Friday, expects the property business to contribute over 90% to its net profit for the financial year ending Dec 31, 2016.
Its deputy chairman and group managing director Datuk Ewe Swee Kheng said that the company received very strong interest for City Of Dreams and is now in the midst of preparing for the launch, which is scheduled for the second half of this year.
"With the APDL approval in hand, Ewein Zenith may now commence development work of the City Of Dreams project.
"This is a huge step forward for our company in crystalising our ambition to diversify and transform Ewein into property development. The project is expected to provide a gross profit of RM200 million for the joint-venture (JV) outfit over a four-year period," he said in a statement last Friday.
Ewein received the greenlight for the RM800 million project from the Urban Wellbeing, Housing and Local Government Ministry last Friday.
Ewein Zenith is a 60% subsidiary of Ewein while Consortium Zenith BUCG Sdn Bhd holds the remaining 40%.
The City Of Dreams project is part of Consortium Zenith BUCG's 110-acre project at Bandar Tanjong Pinang in Penang, which is expected to generate gross development value (GDV) of RM25 billion over the next 10 years.
The reclaimed land was given by the Penang state government to Consortium Zenith BUCG as compensation for the construction of the RM6.3 billion Penang Undersea Tunnel and three road bypass projects.
The master plan for Bandar Tanjong Pinang will comprise residential and commercial properties.
Listed on the Main Market of Bursa Malaysia, Ewein's core business is in the fabrication of precision sheet metal. It diversified into property investment in 2012 and eventually ventured into property development through JV.