AME Elite to replenish its land bank in Johor, Selangor

KUALA LUMPUR (June 19): Integrated industrial space solutions provider AME Elite Consortium Bhd (AME) is planning to replenish its land bank by targeting areas in Johor and Selangor.

The one-off expenses estimated RM69 million to acquire land would form a foundation of future industrial park building and expand its footprint beyond Johor.

JF Apex Securities Bhd in a note today said, together with the budget of RM9 million to expand its precast concrete fabrication, the group is able to take up more precast works for internal and external projects in future despite current contribution to the group’s top line.

“Thus far, not being significant (with RM31.7 million remaining order book), the expansion is expected to enhance its annual capacity of 12,000m3 per year,” it said.

The research house said AME’s cash pile ballooned to RM179 million in the nine months in the financial year 2020 (9MFY20) from RM102.4 million in 9MFY19, mainly due to the fund raised from the IPO in 2019.

“This will give the group ample room to gear up for further land bank acquisition as well as supporting its capital-intensive construction projects,” it said.

AME’s current outstanding order book of RM302.1 million included a single-storey warehouse and a two-storey factory unit and warehouse with a six-storey office block in Selangor, precast works for a residential flat development comprising two blocks of apartment train depot expansion in Singapore as well as customisation of factories would be able to provide earnings visibility for the next three years.

“We estimate order book replenishment of RM250 million for FY21 and FY22,” it added.

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