Ewein Berhad (Ewein - 7249) is known for it's metal sheet fabrication, designing and fabrication of precision moulds, tools and dies, as well as plastic injection business. However, the group had started to embark into property development and construction since Year 2011 in order to enhance the revenue and profitability of the group.
As a start, Ewein had bought over Menara IJM Land in Penang, receiving rental income from the fully tenanted building. Under their property portfolio is also Fort Cornwallis which is generating revenue from the rental, car park, and ticketing income.
However, bigger plans are ahead of Ewein under the helm of Dato Ewe Swee Kheng. The City Of Dreams - A brand new image for Penang, is a multi billion ringgit development that is going to attract multiple investor in the global arena into Penang's booming potential.
Transforming Dream to Reality
The
first maiden project that Ewein undertook involving 572 units of luxury
service apartments at the prime land of Bandar Tanjong Pinang, carrying
a GDV of RM 800 million. At an average price of RM 1172 psf, the
project had saw more than 1200 applicants that had put forward interest
in owning a piece of the project that offer a direct sea view.With the project almost sold out, and construction for this project had commenced and will be contributing towards the bottom line of Ewein for the next 3 years.
Penang is slated for bigger transformation process with the entrance of Consortium Zenith BUCG (CZBUCG) in developing and constructing the RM 6.3 billion undersea tunnel that connects Butterworth to Gurney Drive. In return, Penang government will pay CZBUCG with 110 acres of prime seafront land at Bandar Tanjung Pinang, of which 50 acres of land will be sale of Ewein Zenith (60% owned by Ewein Berhad, 40% owned by Consortium Zenith) in order to develop a one stop wellness destination from a synergy of health, healing, recuperation and entertainment area.
This mega development that Ewein Zenith is developing will carry a massive GDV of RM 13.9 billion, which includes wellness apartments, retirement and healthcare wellness residential suits, serviced apartments with wellness facilities, resort suites and ambulatory services. This massive development is the top champion in the Malaysia EPP 10 for Wellness Resort.
Providing a great sea view with great connectivity in an integrated wellness resort and tourism hub in Penang which is free from natural disaster such as earthquake and typhoons, that is what most baby boomers are looking forward for their retirement.
While the massive construction and development held by Consortium Zenith BUCG had not saw any listed entity involved, Ewein will be the closest link towards any spill over project that will be awarded in the future. However, the recent project award to Vivocom (formerly known as Instaco) will put both Ewein and Vivocom as the closest linked listed entity that had direct dealing with the CZBUCG for any future projects.
Conclusion
Ewein is an interesting counter to be look upon for a long period, considering the growth potential of the company in the property and construction arena in Penang.
A stronger quarter will definitely set Ewein northward bound again, with a target of RM 1.50.
http://bonescythe.blogspot.my/2016/02/ewein-transforming-penang.html
