KUALA LUMPUR: Lim Seong Hai Capital Bhd will continue to implement its growth strategy and pursue other future opportunities to enhance its RM775.0 million outstanding construction work orderbook.
LSH today received shareholders' nod to diversify its business to property development, and acquire Astana Setia Sdn Bhd
Chairman Tan Sri Lim Keng Cheng said in addition to the the provision of construction-related services and solutions under BEST Collaboration Framework, LSH would be entitled to fees based on its client's construction and property projects value of RM2.8 billion.
"The corporate proposal has also given us the opportunity to undertake development projects with a gross development value of RM1.6 billion which will also benefit other divisions under the company," Lim said after LSH's annual general meeting today.
Upon the completion of the corporate proposals, LSH would be in line to further expand its construction capabilities by fully integrating digital technologies, he added.
The acquisition of LSH BEST Builders Sdn Bhd in October 2021 led to the diversification into construction and construction related services and solutions business.
Under its BEST Framework, LSH is now utilising innovative digital tools, such as Digital Industrialised Building Systems, Building Information Modelling, drones and cloud platforms.
Lim said LSH would be able to leverage on the construction expertise of Astana Setia to create synergy with increased efficiency, improved innovation, enhanced solutions, and larger orderbook, resulting in a stronger and more effective entity that will propel the growth and profitability of the group moving forward.
"The construction industry has historically been associated with manual labour, heavy machinery, and long lead times.
"LSH has, however, identified this problem statement and acknowledged the potential of harnessing the power of technology to stay ahead of the curve in this rapidly evolving industry."