Harvest Miracle to diversify into construction
The initiative, to be undertaken through wholly-owned subsidiary Miracle Nexus Supply Sdn Bhd (MNS), will be tabled for shareholder approval at an upcoming EGM.
The move follows a decline in Harvest Miracle's core information technology (IT) and information and communication technology (ICT) division revenue, which fell from RM126.1mil for the financial year ended March 2023 (FY23) to RM89.1mil in FY25 due to 'weaker demand for ICT-related services caused by market saturation'.
In a filing with Bursa Malaysia, the group said it has been actively broadening its revenue base, having ventured into money lending, plantation, clay brick manufacturing and construction materials in recent years.
For FY25, clay brick manufacturing generated RM20.53mil in revenue, while the newly incorporated construction material business contributed RM9.19mil.
'The construction materials business is expected to benefit from robust public and private sector investment,' Harvest Miracle pointed out, citing the Madani Economy framework and catalytic transport projects as drivers.
MNS will supply a wide range of structural and finishing materials, from aggregates, steel bars and cement to tiles, timber and insulation, which will be sourced from 'reputable local and international manufacturers'.
The business will focus on project-based clients such as developers and contractors, offering bulk order customisation, just-in-time delivery, and financing solutions through Harvest Miracle's money lending division.
The operations will initially serve Peninsular Malaysia's southern region, with plans to expand nationwide and overseas.
The group said MNS general manager Lili Lee, a 25-year industry veteran, will lead the division, bringing experience from major building materials suppliers in Malaysia and Singapore.
Furthermore, Harvest Miracle has allocated RM40mil from internal funds for the venture's working capital through FY27, with potential bank financing for further expansion.
The group is also in talks to dispose of its oil palm plantation lands to free up capital for growth areas with 'more stable recurring income'.
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