Grand-Flo bags Thailand networking jobs

Tracking solution firm, Grand-Flo Bhd, has secured two networking jobs in Thailand worth RM90 million.

"Both jobs are awarded by the Communications Authority of Thailand (CAT).

The first job, worth RM50 million, is in the province of Nakhonratsima while the other, in the province of Chiang Mai is valued at RM40 million," said Group Managing Director-cum-Group President Derrick Tan.

He said the company would obtain shareholders' approval, at an extraordinary meeting next month, for the RM40 million-job as the total value of both jobs were huge.

"They are BOT (build, operate and transfer) projects for five years which will enable us to collect rental from 2011 till 2016. After that, we will hand over to CAT and will charge them for maintenance," Tan said after the company's annual general meeting today.

He said the projects would generate recurring income of between RM3 million and RM4 million a year for five years.

Tan added that the company has also been looking at acquisition opportunities overseas.

"But, we are not going to rush. We are looking at opportunities in countries where we don't have a presence including Indonesia and the Philippines," he added.

The company has direct presence in Hong Kong, China and Vietnam.

Currently, Tan said, overseas businesses made up one-third of the company's profits while the rest came from its local businesses.

"We hope to have an equal contribution from overseas and local businesses as soon as possible," he said.

Tan foresees a better performance for the company's current financial year ending December 31 2011.

"Performance for the first quarter is good. We are also doing well for the second quarter. If this momentum continues, it will be better than last year," Tan added.

For the first three months to March 31 2011, Grand-Flo turned in a net profit of RM2.09 million, against RM2.03 million, chalked up in the corresponding quarter last year.

Revenue rose to RM17.03 million, during the period under review, from RM13.95 million reported in the previous corresponding period.

On the local front, Grand-Flo is looking at venturing into established industries such as fast moving consumer goods, retail, electrical & electronics and logistics.

"We are moving aggressively into the businesses of the government and government-linked companies," said Chief Executive Officer Ping L.Cheng.

Ping said the company had been participating regularly in government tenders such as tracking, bar coding and warehousing. -- Bernama