Pestech's order book set to thicken

by **Cals** Thu 10 Oct 2013, 06:26

Posted on 10 October 2013 - 05:36am

Liew Jia Teng
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SUBANG JAYA (Oct 10, 2013): Integrated electric power technology provider Pestech International Bhd expects to see a 75% increase to its order book to some RM500 million in the next two to three years, from RM286 million last year.

The group is currently bidding for some RM1.2 billion worth of projects, including those in Thailand and the Philippines.

"Our success rate in tenders is about 20%," its CEO and executive director Paul Lim Pay Chuan told reporters after the group's EGM here yesterday.

Pestech is expecting its order book to hit RM250 million by the end of this year.

As at end of September 2013, Pestech has secured an order book of RM240 million, including on-going jobs in Sarawak, Johor, Cambodia and Laos, which will keep the group busy for another one to two years.

Lim said the RM500 million order book target is an internal one, but added that he is confident of the group's ability to meet it due to the "huge market demand not only in Malaysia, but also in other Asean countries".

The group focuses on emerging countries such as Ghana, Mali, Tanzania, Sri Lanka, Laos, Cambodia, Vietnam, Brunei and Papua New Guinea where there is demand for electricity transmission and distribution assets.

"Pestech will focus more on Southeast Asia going forward as we see a lot of potential in this region for the next five to 10 years, especially Cambodia," said Lim.

Pestech had recently won a RM95.6 million contract from Sarawak Energy Bhd to build a sub-station in Mapai, Sibu. It had also bagged a US$29.3 million contract to build a double transmission line in Laos.

Lim also said the group expects its revenue to grow 30% for the current financial year ending Dec 31, 2013 (FY13). It posted a net profit of RM16.6 million on revenue of RM136.1 million in FY12.

In the first half of this year, the group saw its revenue rise 28% to RM65.83 million from RM51.46 million a year ago.

"This is the second year since Pestech is listed on Bursa Malaysia. Our credibility has increased and our portfolio of customers is growing. We received more enquiries from industrial customers and commercial customers (about our services)," he said.

Earlier, at the meeting, Pestech shareholders approved the establishment of a dividend reinvestment plan (DRP).

"This scheme will help us to retain a major portion of the dividends in the group as reserve funds, which can be used for future investments and working capital," said its executive chairman Lim Ah Hock.