SHAH ALAM: Kumpulan Perangsang Bhd (KPS), which recently disposed of part of its water assets, aims to achieve RM1 billion in revenue by 2018, and is looking for more acquisitions to achieve the target.

In 2015, KPS' top line was down by 8.9% to RM285.96 million against RM314.03 million in 2014.

Chairman Raja Datuk Idris Raja Kamarudin said the company has allocated RM300 million this year to acquire assets with controlling stake. No specific target sectors have been set.

"We're targeting matured immediate income generating assets to ensure sustained dividend payout and value creation for our shareholders," he told a press conference after the company's AGM here on Friday.

In recent months, KPS has undertaken a few corporate exercises, including the acquisition of a 60% stake in licence holder of the King Koil mattress brand for US$28.8 million (RM116 million). Its also acquired a 51% in chemicals trading firm Aqua-Flo Sdn Bhd and bought 51% equity interest in Smartpipe Technology Sdn Bhd, which is involved in water pipe replacement business, for RM5.1 million.

Idris assured shareholders that the King Koil operations will run well by bringing in expertise and people who are familiar with the franchise business. "This is not a manufacturing outfit ... we purely look at the licensing business."

Nonetheless, he expects Aqua-Flo to be the highest revenue contributor in 2016, while King Koil will provide a stable income stream.

With the disposal of its water asset Konsortium Abbas Sdn Bhd to the Selangor government for RM78.054 million, Idris said, the company's gearing has dropped substantially to only 0.02 times with a lower debt level of RM30 million at end-December 2015.

"Previously it was very difficult for us to look into new acquisitions while we had the baggage of high gearing of RM1.2 billion debts. Now we're to look at new investments as this will give us opportunities to access funding from the financial or capital market," he said.

As for KPS' 30% stake in Syarikat Pengeluar Air Selangor Sdn Bhd (Splash), Idris said he hopes a deal could be reached by Oct 7 this year, when the one-year grace period for the renegotiation of the master agreement between the Selangor government and the water concessionaires ends. However, there has been no sign that Gamuda, which owns a 40% stake in Splash, will accept the state government's offer anytime soon.

Besides Splash, Idris said, another potential divestment is KPS' 20%-owned Sprint Highway, the operator of the Kerinchi Link, Damansara Link and Penchala Link.