KUALA LUMPUR (Oct 1): Building materials manufacturer Ajiya Bhd (KL:AJIYA) is selling its freehold industrial land and factory in Puchong, Selangor for RM58 million cash, about 45% above its latest market valuation of RM40 million.
Its wholly-owned subsidiary, Ajiya Safety Glass Sdn Bhd, signed a sale and purchase agreement with healthcare products manufacturer Esprit Care Sdn Bhd on Thursday, according to a Bursa Malaysia filing.
Esprit Care is equally owned by Wong Han Choong and Chua Chun Siang. They are also directors of the company, along with Chai Sek Ying.
The disposal values the 13,536 sq m, or 145,700 sq ft, property at about RM398 per sq ft, compared with the independent valuer’s estimated value of about RM275 per sq ft.
The property comprises a single-storey factory and a two-storey office building, with a total built-up area of about 9,835 sq m.
Ajiya said the property was valued at RM40 million by CBRE WTW Valuation & Advisory Sdn Bhd as at Sept 10, 2026. Its net book value stood at RM37.03 million as at end-December 2025.
The group said the sale was agreed on a willing buyer, willing seller basis and expects to record a net gain of RM25.45 million, excluding related costs.
Ajiya said the factory’s production capacity has already been moved to its main facility, allowing it to dispose of the property without affecting operations or manufacturing output.
The proceeds will be used for working capital, business expansion, potential investments and possible dividend distribution.
The disposal does not require shareholder approval and is expected to be completed by the first quarter of 2027.
The company posted a net loss of RM10.12 million for the second quarter ended June 20, 2026 compared with a net profit of RM10.82 million last year due to unrealised non-cash fair value loss recognised on quoted investments. It reported a loss on other investments of RM15.7 million for the quarter.
Ajiya is majority-owned by Chin Hin Group Bhd (KL:CHINHIN), which holds a 74.48% stake.
Ajiya shares closed one sen or 0.95% lower at RM1.04 on Thursday, valuing the company at RM633.5 million. The stock has fallen 16.8% over the past year.