KUCHING: Naim Holdings Bhd has reported notable improvement in the performance of its construction business through disciplined cost management, said its chairman Datuk Amar Abdul Hamed Sepawi.
He said disciplined cost management had resulted in cost savings from certain completed construction projects, and this had positively contributed to the group’s overall financial results in 2023.
“Our focus on timely project delivery with expected returns has been central to our operational success,” he added in the company’s 2023 annual report.
In financial year 2023 (FY2023), Naim’s construction segment recorded a profit of about RM4.5 million, which was nearly three times higher than FY2022, despite drop in revenue by 17 per cent to RM220.2 million from RM265.3 million.
The earnings’ improvement, said the company, was driven by cost savings arising from the completion of certain projects upon the finalisation of accounts with the clients and/or contractors.
Naim attributed the lower revenue of the construction segment in FY2023 to the nonrecognition of certain variation works that are currently under assessment as a prudent measure.
“The current projects on hand are under close monitoring and management to ensure that these projects are completed within the targeted timeline and achieve the expected returns,” it said. One of the group’s major on-going construction project is Wisma Melayu here.
Naim said as part of the group’s efforts to bolster the performance of the construction segment, it is continuously on the lookout for opportunities arising from numerous people-centric initiatives currently implemented or going to be implemented by the state authorities in order to build up and replenish its order book.
Our focus will primarily be on projects where we have proven track records and experience, supported by available project management resources.”
Reviewing the performance of the group’s core business — property development, Abdul Hamed said via various sales and marketing initiatives, value-added service packages and stakeholders’ engagement activities, these efforts had resulted in gradual improvement of property sales.
Amid the property market’s gradual recovery last year, Naim group reported higher new property sales of RM79.9 million, up 35 per cent from RM59.3 million achieved in FY2022.
However, the property development segment posted lower revenue of RM71.8 million (FY2022:85.6 million) due to lower work progress achieved, especially in some newly launched projects during the year under review.
But the segment’s performance showed slight improvement due to changes in the product mix sold.
“As part of our initiatives to expand our customers base,we are also exploring opportunities to promote our products beyond Sarawak and even Malaysia through the Sarawak-Malaysia My Second Home programme.
“In addition, we are continuously striving to enhance and foster more sustainable customer relationship through various stakeholders’ engagement activities.
This include the rewards progammes, like the Nfinty Loyalty programme exclusively designed for Naim customers, and a Referral programme for other stakeholders.
These efforts are in alignment with our core value initiative — Nurturing a Culture of Obsessed Services (NaCOS) which was introduced in FY2023,” added the leading property developer.
Abdul Hamed said the group had also seen gradual improvement in its retail leasing and hotel business, and it is continuously committed to various revamping activities to improve occupancy rates and achieve sustainable investment yields.
“Competitive rental rates and stringent cost control measures are implemented to adapt to the changing working culture and the rise of e-commerce,” he added.
Naim owns the 4-star Fairfield by Marriott Bintulu Paragon and Bintulu Paragon Street Mall and Miri Permy Mall.
The group started various revamping plans since 2022, and these include the introduction of new anchor stores, food & beverage and other retail offerings.
Also proposed is the upgrading of the mall infrastructure, with enhancement plans still under study.
In FY2023, Abdul Hamed said Naim group posted higher net profit of RM43.2 million (FY2022:RM31.5 million) despite a 14 per cent drop in revenue to RM317 million (RM368.6 million).
The group’s overall earnings were significantly boosted by the sharply higher share of net profit from Naim’s major associate, Dayang Enterprise Holdings Bhd, to RM53.2 million from RM30.8 million in FY2022.
Last year, Abdul Hamed said Naim group ventured into education business via an outright acquisition of about 53.3 per cent equity interest in an established private school under Mawar Education Centre Sdn Bhd.
Mawar Education is Malaysia’s biggest tuition centre chain.
