FY17 rev­enue growth tar­get of 20% ‘ achiev­able’

> Strong or­der book of RM950 mil­lion to last elec­tric power tech­nol­ogy com­pany un­til 2018

The Sun (Malaysia) - - SUNBIZ - BY WAN ILAIKA MOHD ZAKARIA

SHAH ALAM: In­te­grated elec­tric power tech­nol­ogy provider Pestech In­ter­na­tional Bhd is look­ing at 20% growth in rev­enue for the fi­nan­cial year end­ing June 30, 2017 (FY17), on the back of a strong or­der book of RM950 mil­lion.

“Our cur­rent or­der book will last un­til 2018. So it (the 20% growth) is not some­thing that we have to rely on a new or­der for. It is achiev­able,” its ex­ec­u­tive di­rec­tor Paul Lim Pay Chuan (pix) told re­porters af­ter its AGM here yes­ter­day.

“But of course there will be more con­tracts that we hope to sign be­fore end of FY17,” he added.

For FY16, the group posted a net profit of RM72.83 mil­lion, on rev­enue of RM508.7 mil­lion.

To date, Lim said, the group has ten­dered for projects worth RM1.2 bil­lionRM1.3 bil­lion. It has a 30% suc­cess rate on av­er­age.

Re­cently, Pestech se­cured a con­tract worth RM37.75 mil­lion from the Na­tional Grid Corp of the Philip­pines (NGCP), mark­ing its en­try into the Philip­pine power in­fra­struc­ture mar­ket.

NGCP is a pri­vately owned cor­po­ra­tion in charge of op­er­at­ing, main­tain­ing and de­vel­op­ing the Philip­pines’ state-owned power grid.

“We are quite pos­i­tive about the Philip­pines (mar­ket), with gross do­mes­tic prod­uct growth around 5% for the last few years. Since we have got our first con­tract there, hope­fully it can (open doors) for us,” Lim said.

He added that the group had also re­cently se­cured its sec­ond job in Pa­pua New Guinea, with a job worth RM51.7 mil­lion from PNG Power Ltd (PPL) for the Port Moresby power grid de­vel­op­ment pro­ject.

On prospects, Lim said the group is pos­i­tive on its out­look for the en­ergy in­dus­try, as the num­ber of power plants be­ing built in the Asean re­gion is in­creas­ing, with the mar­ket value at about US$20 bil­lion (RM89.2 bil­lion).

“The in­fra­struc­ture re­quire­ment in Asean re­gion is at least US$20 bil­lion per year, and the group is now only do­ing less than 10% of the whole re­gional re­quire­ments.

“There­fore, we feel that the de­mand for our ser­vices will (bring us) an­other few years of growth,” he said.

Go­ing for­ward, Lim said Pestech will con­tinue ex­plor­ing op­por­tu­ni­ties in the power in­fra­struc­ture busi­ness, such as power plant au­to­ma­tion and rail elec­tri­fi­ca­tion in the re­gion for fu­ture growth.

Pestech’s prin­ci­pal busi­nesses in­clude de­sign­ing, en­gi­neer­ing, man­u­fac­tur­ing, in­stal­la­tion, test­ing and com­mis­sion­ing and con­struc­tion of high­volt­age and ex­tra high-volt­age sub­sta­tions and equip­ment, trans­mis­sion lines and un­der­ground ca­bles con­nec­tions for elec­tric­ity trans­mis­sion and dis­tri­bu­tion.

It also pro­vides main­te­nance, up­grad­ing and retrofitting works.

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