Meta Bright: Journey to cultivating sustainable future & recurring income streams
IN THE dynamic landscape of Malaysian business, few stories are as compelling as the transformation of Meta Bright Group Bhd (formerly Eastland Equity Bhd). Once grappling with financial challenges, Meta Bright has re-emerged from the red to chart a course towards a profitable and sustainable future.
Since 202, the property-based Main Board-listed company has been making notable strides in re-shaping its business model with its key focus being to create sustainable, recurring income streams.
As we dive into 2024, Meta Bright’s story is one of strategic re-orientation and innovation which is particularly evident in its leasing and concrete businesses. It is worth examining how these efforts are materialising and what this means for the company’s future.
Meta Bright’s financial rebound began with successful fund-raising initiatives in 2021 and 2022 by securing RM87 mil.
These funds were smartly allocated towards reducing debt, investing in the Damai Suites – commercial property development in Kota Kinabalu and exploring new business opportunities.
The result was a remarkable shift in the company’s financials with profits of RM4.57 mil in FY6/2022 and a doubling of that figure to RM8.67 mil in FY6/2023. This turnaround is a direct outcome of the management’s focused strategies.
Energy biz boost
Meta Bright’s resurgence is largely attributed to its diversification into energy-related and leasing businesses. The company’s move into these sustainable and high-demand sectors builds a resilient foundation for long-term, stable revenue streams.
The progress in the energy sector – coupled with strategic leasing operations – indicates a robust platform for generating recurring income. These sectors represent not just new business avenues but are also aligned with global sustainability trends.
Led by its Renai Hotel Kota Bharu (formerly The Grand Renai Hotel), the hospitality sector continues to be a key contributor to Meta Bright’s revenue. In its FY6/2022, the hotel’s revenue surged by RM9.4 mil or a 71% jump from the previous year with its occupancy rate having spiralled by 65%.
The refurbishment of the hotel and increased foot traffic to its KB Mall indicate a strengthening of these traditional revenue streams. These areas remain crucial to the company’s overall revenue mix.
Going forward, Meta Bright’s foray into the international leasing business, particularly its equipment leasing agreement with Mt Cuthbert Resources Pty Ltd, a copper mining company in Australia, is worth to pay attention to.
Poised to yield recurring monthly revenue of up to A$223,000 (RM693,000), this is a demonstration of Meta Bright’s ability to spot and seize lucrative opportunities in the global marketplace.
Another pivotal milestone in Meta Bright’s growth trajectory is the successful acquisition of a major stake in Expogaya Sdn Bhd, a leader in the ready-mix concrete manufacturing business in Sabah.
This acquisition signifies a strategic integration into the building materials supply chain. With this acquisition, Meta Bright has transformed into a vertically integrated player in the construction sector.
This move ensures a steady supply of materials for its development projects while strengthens the group’s competitive edge in the property development arena. By securing its position in the supply chain, Meta Bright can better control costs and improve efficiency.
It is worth noting that since the latter half of 2023, its board of directors of comprising Lee Chee Kiang (managing director), Datuk Lee Wai Mun (Executive director and largest shareholder) and Phang Kiew Lim (executive director) have been steadily buying its shares from the open market.
Such move could suggest that they see Meta Bright as undervalued or that they anticipate future growth. Such insider buying often indicates confidence in the company’s prospects, hinting at potentially significant developments ahead for Meta Bright.
With 2024 underway, the question is whether Meta Bright’s strategic efforts would start paying off in terms of stable recurring income in the year of the wooden dragon.
The groundwork laid in previous years is expected to start yielding results, potentially enhancing the company’s appeal to investors.
Meta Bright’s journey over the past few years reflects a company actively adapting to changing market conditions and focusing on long-term, sustainable income.
As 2024 progresses, it will be interesting to see how these strategies unfold and their impact on the company’s growth and stability. For investors and industry observers, Meta Bright is certainly a company to watch.
At the closer of today’s trading, Meta Bright was up 0.5 sen or 2.86% to 18 sen with 3.34 million shares traded, thus valuing the company at RM451 mil. – Feb 15, 2024