BHS Industries hopes for turnaround in FY2017 with GTP Pekan project

KUALA LUMPUR (Dec 20): BHS Industries Bhd is hoping to turn itself around in the financial year 2017 (FY2017) by diversifying into the construction and property business.

"We hope to turn the company around but [it] depends on how the market moves," its managing director Datuk Lim Thiam Huat told reporters after its annual general meeting today.

Presently, Lim noted that the company's main target focus is on Green Park Technology Pekan (GTP Pekan).

Lim said the project is now in the first phase and will start its operation in mid-2017, and BHS Industries expects to see revenue from the project in the next six months thereafter.

On Nov 1, the group had entered into a memorandum of agreement with China Nuclear Industry Huaxing Construction Co Ltd to jointly develop Phase 2 and Phase 3 of GTP Pekan.

Lim added that phase 4 will also be developed jointly with Huaxing, and the company looking to finalise the agreement before May 2018.

"It is affected by overseas orders which were affected by the depressed oil prices," quipped Lim, when asked about the company's paper business.

The group's overseas revenue contribution makes up 60%, while its local contribution amounts to the remaining 40%.

However, Lim said he sees a positive comeback from the paper business.

At noon break today, shares in BHS Industries dipped one sen or 2.44% to 40 sen, giving it a market capitalisation of RM174.73 million. — theedgemarkets.com