Share
KUALA LUMPUR: UEM Group Bhd is aiming for "stretch targets" of RM30 billion in revenue and RM3 billion in net profit in 2015, said its managing director and CEO Datuk Izzaddin Idris.
He said the group would look to achieving its targets via organic growth and acquisitions. However, it is not considering any targets at this point in time.
UEM is wholly owned by Khazanah Nasional Bhd, the investment arm of the government. The group holds controlling stakes in several listed entities including PLUS Expressways Bhd, Time Engineering Bhd, UEM Land Holdings Bhd and Faber Group Bhd.
The group is also reorganising its business, splitting the operations into four core business divisions — expressways, township and property development, engineering and construction, and asset and facility management.
"The expressways, and asset and facility management are seen as the stable income generators, whereas the township and property development, and engineering and construction divisions are seen to provide the cyclical income," Izzaddin told reporters at a briefing here on Thursday, July 22.
The group had recently seen a spate of divestments, disposing of interests in Touch 'n Go Sdn Bhd, Pharmaniaga Bhd, Teras Teknologi Sdn Bhd and Gapima Sdn Bhd, businesses which did not fit into the four core areas. Interestingly, Time Engineering is UEM's only remaining "non-core" business.
Izzaddin said the company had no plans currently to sell off its stake in Time Engineering, which was recently classified as a Practice Note 17 (PN 17) company.
"We cannot sell if the value is not there. The board's strategy now is to grow the business and restore the value. The information, communication and technology (ICT) sector is very competitive and it will take some time to realise our investment," he said. Based on UEM Land's 2009 annual report, UEM has a 45.03% stake in Time Engineering, whose main asset is its 28.69% stake in Time dotCom Bhd.
Izzaddin, who also sits on Time Engineering's board of directors, added that if the right offer came along, UEM would consider a sale. "We need to recover our cost of investment and also ensure that the purchaser has a game plan. There will be no asset stripping," he said.
On another note, Izzaddin said the group still intended to pursue business opportunities in the Middle East, despite the misfortunes of other Malaysian companies such as Zelan Bhd, Sime Darby Bhd and Muhibbah Engineering Bhd in their ventures there.
"We are looking for partners in the Middle East as there are still opportunities. We have been in discussions with an up-and-coming Malaysian construction company, which specialises in the area," he said.
Izzaddin added that smaller facility management firms in India which were unable to secure large projects could team up with UEM.
He also said in the past few years, UEM had been absent from India as the company and its joint-venture partner had been tagged as non-performing contractors in the country.
"We missed out on some opportunities in India due to this. However, as of April 7, this blacklist has been lifted," he said.
Time Engineering and Time dotCom on Thursday closed unchanged at 45.5 sen and 57.5 sen respectively, against the FBM KLCI's 4.97-point slide.
He said the group would look to achieving its targets via organic growth and acquisitions. However, it is not considering any targets at this point in time.
UEM is wholly owned by Khazanah Nasional Bhd, the investment arm of the government. The group holds controlling stakes in several listed entities including PLUS Expressways Bhd, Time Engineering Bhd, UEM Land Holdings Bhd and Faber Group Bhd.
The group is also reorganising its business, splitting the operations into four core business divisions — expressways, township and property development, engineering and construction, and asset and facility management.
"The expressways, and asset and facility management are seen as the stable income generators, whereas the township and property development, and engineering and construction divisions are seen to provide the cyclical income," Izzaddin told reporters at a briefing here on Thursday, July 22.
The group had recently seen a spate of divestments, disposing of interests in Touch 'n Go Sdn Bhd, Pharmaniaga Bhd, Teras Teknologi Sdn Bhd and Gapima Sdn Bhd, businesses which did not fit into the four core areas. Interestingly, Time Engineering is UEM's only remaining "non-core" business.
Izzaddin said the company had no plans currently to sell off its stake in Time Engineering, which was recently classified as a Practice Note 17 (PN 17) company.
"We cannot sell if the value is not there. The board's strategy now is to grow the business and restore the value. The information, communication and technology (ICT) sector is very competitive and it will take some time to realise our investment," he said. Based on UEM Land's 2009 annual report, UEM has a 45.03% stake in Time Engineering, whose main asset is its 28.69% stake in Time dotCom Bhd.
Izzaddin, who also sits on Time Engineering's board of directors, added that if the right offer came along, UEM would consider a sale. "We need to recover our cost of investment and also ensure that the purchaser has a game plan. There will be no asset stripping," he said.
On another note, Izzaddin said the group still intended to pursue business opportunities in the Middle East, despite the misfortunes of other Malaysian companies such as Zelan Bhd, Sime Darby Bhd and Muhibbah Engineering Bhd in their ventures there.
"We are looking for partners in the Middle East as there are still opportunities. We have been in discussions with an up-and-coming Malaysian construction company, which specialises in the area," he said.
Izzaddin added that smaller facility management firms in India which were unable to secure large projects could team up with UEM.
He also said in the past few years, UEM had been absent from India as the company and its joint-venture partner had been tagged as non-performing contractors in the country.
"We missed out on some opportunities in India due to this. However, as of April 7, this blacklist has been lifted," he said.
Time Engineering and Time dotCom on Thursday closed unchanged at 45.5 sen and 57.5 sen respectively, against the FBM KLCI's 4.97-point slide.
SHARE
