Metronic eyes turnaround

> Focusing on engineering, banking on China global halal hub joint venture to bring in profits

PETALING JAYA: Metronic Global Bhd, which will be shifting its focus to its engineering business, is banking on a new partnership collaboration to develop a global halal hub in China to recognise profit.

Metronic entered into a collaboration agreement with MB Longji Group’s wholly owned subsidiary MB Longji Holdings Sdn Bhd last Friday to set up Metronic Global Halal Industrial Hub in Sichuan Province, China.

MB Longji has been appointed master developer of land measuring 1,800 acres by the Sichuan provincial government. Of this, 72 acres of infrastructure equipped area has been designated for the development of the halal industrial park, known as Suining International Halal Park.

Metronic has also formed a mechanical engineering consortium with Perunding Eagles Engineers Sdn Bhd and Schneider Electric Industries (M) Sdn Bhd to oversee and undertake all construction and development within the halal hub.

The group is banking on this project, which is touted as a “turnaround project”, to rake in a pre-tax profit of RM12.5 million within 12-18 months.

Metronics executive director Ric Koh told reporters at a briefing that Metronic intends to focus on its key area of strength despite having diversified into other segments in the past – having exited the fertiliser business in the previous financial year.

Koh alluded to the property development segment taking a backseat for the time being. “The focus is on engineering and if we have extra cash and manpower, we will divert it into property.”

Metronic has an ongoing commercial development project comprising 16 units of triple-storey shop lots in Kuala Krai, which Koh says is 80% complete.

According to its filing with the stock exchange, its order book stood at RM34 million as at Sept 30, 2017.

Meanwhile, it has tendered for projects worth over RM180 million. The group is expecting to bag at least one material contract in the next calendar year for its engineering segment.

The intelligent building management systems specialist was recently thrust into the limelight following findings on several irregularities from a special audit.

“We’ve initiated legal cases against those wrongdoers. We’ve announced which are the parties involved. I think we have announced that two out of the seven items included in the forensic report,” Koh said on the measures that are being taken in relation to the findings.

For the third quarter ended Sept 30, the group recorded a net profit of RM40,000 compared with RM1.94 million in the previous year. Its net profit for the first nine months of the year stood at RM256,000 against RM6.23 million in the previous year. The group has changed its financial year end from Dec 31 to March 31.

The stock closed unchanged at five sen with 729,300 shares done last Friday.