Ewein reclassified under properties sector

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KUCHING: Ewein Bhd (Ewein), a company that is listed on the Main Market of Bursa Malaysia Securities, has announced that its securities will be reclassified from industrial products sector to the properties sector with effect today.

The company’s stock number, 7249, and stock short name, EWEIN, remains unchanged.

“The reclassification is timely to reflect the current business undertakings of Ewein, which is in property development.

“We are pleased that Ewein has successfully transformed into a property company.

“This is evident by the profit contribution from our maiden property development activity in the third quarter of the financial period ended September 30, 2015,” Ewein deputy chairman and group managing director Datuk Ewe Swee Kheng commented on this occasion.

Datuk Ewe added that the reclassification will help to ensure that peer-group comparisons are meaningful and should help attract interest from investors who specifically follow the properties sector.

“Going forward, the property segment will be the company’s core business, and will contribute over 80 per cent of our top and bottomline,” he highlighted.

Ewein started as a company primarily involved in the business of precision sheet metal fabrication. The company has embarked on its business diversification plan into the property and construction segment since 2011.

Currently, Ewein is focusing on the development of its luxury seafront property project, City of Dreams that has a gross development value (GDV) of RM800 million.

The property project is located between Gurney Drive and Bandar Tanjong Pinang and is expected to cumulatively contribute RM200 million in profit before tax and minority interests over a four-year period.

Furthermore, Ewein through its subsidiary, Ewein Zenith Sdn Bhd (Ewein Zenith) was also conferred by the Ministry of Domestic Trade, Co-Operatives and Consumerism as a Champion for Entry Point Project (EPP) 10 under the Economic Transformation Programme (ETP) to develop a wellness resort (Wellness Resort) estimated to be fully operational before December 2020.

Ewein Zenith had then inked a Memorandum of Understanding (MOU) with Consortium Zenith BUCG Sdn Bhd for the proposed development of three parcels of freehold land, measuring in aggregate approximately 50 acres located between Gurney Drive and Bandar Tanjong Pinang.

This development is to be known as “Wellness City of Dreams” and has a potential GDV of RM13.89 billion. It is a one-stop wellness destination comprising the elements of health, healing, recuperation, leisure learning and entertainment.

For the financial performance in the third quarter this year, Ewein’s net profit jumped more than 15-fold to RM6.42 million, compared to RM389,000 in the same quarter of the previous year.

The rise was mainly due to the contribution from its property development business. Meanwhile, its revenue rose 117 per cent to RM29.2 million from RM13.43 million in the same corresponding period last year.