Rapid wants property unit to be major revenue earner

By BUSINESS TIMES

RAPID Synergy Bhd, which makes tools for semiconductor firms, wants its property division to make up half of total revenue in two to three years.

This would help the company to offset weaker sales from its main business during a down-cycle in the semiconductor industry.

Rapid’s main income earner currently is its semiconductor business, of which its precision tools division made up 90 per cent or RM23.9 million of group revenue in 2006.

The Penang-based company, which has been steadily investing in land and leasing them out, intends to expand its landbank in Perak, managing director Lim Fung Neng said yesterday.

“Ipoh and Manjung are potential locations, although we are also open to strategic locations in the Klang Valley,” he told reporters after the company’s annual shareholders’ meeting in Penang.

Rapid’s precision tools division is engaged in the manufacturing of precision tools, dies and moulds for the semiconductor, electrical and electronics industries.

Lim said Rapid will continue to partner players in the retail and food and beverage sectors.

The company has already leased its land in Manjung, Perak, to hypermarket operator Giant, while McDonald’s has leased land for its drive-through outlets in Manjung and Ipoh.

A supermarket and fast-food outlet are being planned on a 19,876 sq metre plot of land in Teluk Intan, Perak.

“We are currently working out an agreement for this project, for which we have earmarked RM3.32 million,” Lim said.

“We have earmarked RM4 million this year to acquire state-of-the-art equipment for our manufacturing activities and expect to see a 20 per cent increase in revenue contribution from our tooling division,” Lim added.

For the year to December 31, 2006, Rapid’s turnover rose 23 per cent to RM27.71 million. Its net profit surged 68 per cent to RM6.77 million last year.

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