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Carpet maker SMJ plans to expand into property as 'complementary' business
CARPET specialist SMJ International on Wednesday said it is looking to diversify its business to include property investment and management.
In its bid to broaden its income stream and revenue, the group said it has considered opportunities in the property and hospitality industry which could be complementary to its carpet making and installation business.
The group hopes that a diversification can improve its prospects.
The diversification can provide an opportunity for the group to leverage its current network in the carpet furnishing business to identify business opportunities in the property business, and vice versa. This means the group can also leverage the property business to sell its floor furnishing products to properties managed by the group.
It called the move "a strong synergy with the group's current core business".
SMJ will be convening an extraordinary general meeting to seek shareholders' approval, notice of which will be announced in due course.
SMJ said it does not plan to restrict itself to any specific geographical market. Eventually, it aims to develop it into one of its core business divisions.
It may also explore joint ventures or strategic alliances with third parties who have the relevant expertise if there is an opportunity.
It reported a 46 per cent drop in total attributable comprehensive income for its FY15 to S$865,000.
This was because its growth in export distribution sales yielded lower margin than local distribution sales. It had also secured more contract sales projects from the government. Their selling prices were more competitive, and hence less lucrative.