PETALING JAYA: Tracking solution provider Grand-Flo Bhd sees its information technology (IT) business picking up after the 14th general election (GE14), with stronger earnings expected this year, fuelled by more positive consumer sentiment.

The “wait-and-see” attitude consumers adopted prior to the general election on May 9 had led to weaker first-quarter results for the group, as clients were worried over uncertainties due to GE14, according to Grand Flo president Derrick Tan Bak Hong.

Now, with sentiment improving post-GE14 as political uncertainties give way to clarity, Tan is bullish on the group’s earnings, driven by its IT segment.

“Our IT business is doing well and I am quite positive for this year,” Tan said.

The group’s IT segment is also known as the Enterprise Data Collection and Collation System (EDCCS) division. The division’s order book has picked up pace post-GE14.

To-date, its EDCCS division has secured total orders of RM33.9 million from Malaysia, Hong Kong and China. The group is confident of securing another RM21 million worth of orders in the second and third quarters of this year.

“Grand-Flo is also expecting to ride on the industrialisation 4.0 wave to further drive its IT segment earnings growth. There has been a surge in demand for IT services,” Tan told reporters after the group’s annual general and extraordinary meetings yesterday.

On another note, the group said it is now bidding for its first construction project worth about RM15 million, and that it expects the tender award to be announced a month from now. It is a private project related to a landed property in Alor Setar, Kedah.

While the group’s IT business has always been profitable, Tan said the group wants to diversify into construction to provide additional income.

Meanwhile, during the meetings earlier, Grand-Flo received its shareholders’ approval for the proposed acquisition of the remaining 50% stake in property development company Innoceria Sdn Bhd (ISB), and the group’s proposed diversification into construction.

“With the increase in equity interest in ISB, the group obtains full control of ISB and hence will be able to consolidate ISB’s earnings in full,” said Grand-Flo.

Among ISB’s current projects is the Vortex Business Park, a commercial development located in the industrial hub of Batu Kawan. The project features 60 units of four-storey semi-detached shop-offices and 52 units of four-storey light industrial factories on 8.4ha of freehold land.

Grand-Flo executive director Chuah Chew Hai said the group will embark on the second phase of the Vortex Business Park that carries a gross development value of RM88.17 million, by the third quarter of this year.

He said the project is targeted to have a gross development profit of RM13.67 million, which will contribute positively to the earnings of the group for the future financial years.