Plans to expand its coworking space segment, whichhas a similar business model to WeWork with nosubstantive capital requirements. This segment has a5-year target to grow to 400k-500k sq ft from 167k sq ftcurrently with a revenue of RM100mil and net profit ofRM20mil (RM2mil in FY23). This division suffered aRM0.5mil loss in 1QFY24 due to initial expensesinvolved in the expansion of coworking space, whichincreased by 45% YoY that led to a lower occupancyrate of 65% (vs. 78% in 1QFY23).
Source: AmInvest Research - 15 Jul 2024