EITA Resources keen to bid for more MRT jobs

by **Cals** Wed 25 Mar 2015, 22:43

EITA Resources keen to bid for more MRT jobs

By Shalini Kumar / The Edge Financial Daily | March 25, 2015 : 10:14 AM MYT

KUALA LUMPUR: Lift and busduct manufacturer [size=14]EITA Resources Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) is keen to bid for the next work package to supply lifts and escalators for the Klang Valley mass rapid transit (MRT) project, said group managing director Fu Wing Hoong.

“The MRT is a new infrastructure and we are thankful that the government has given us a chance, and of course when it comes to the next phase, we will work hard to deliver the job to the satisfaction of the client,” he told reporters after the group’s annual general meeting yesterday.

“We would like to continue bidding [for MRT jobs] as we have the experience needed to undertake such a challenging job,” he said.

EITA Resources (fundamental: 1.7; valuation: 1.2) has clinched two MRT contracts to supply lifts and escalators worth RM95 million in total.

On the outlook, Fu said with a challenging economic environment, the construction industry is expected to slow down a little.

“It doesn’t mean that there will be no more construction activity, the business is still there. Nevertheless, we have ongoing projects,” he said.

“While we continue to bid [for projects] in a more challenging market over the next one to two years, we have seen a significant increase in our order book to tide us over in the event the market unexpectedly takes a bad turn,” he said.

As at Dec 31 last year, EITA Resources’ order book stood at over RM210 million.

Fu also targets to grow the group’s export business and the manufacturing division to contribute 50% and 70% of revenue respectively by 2020. Currently, the export business contributes about 23%.

EITA Resources shares closed up 3.31% to RM1.25 yesterday, bringing a market capitalisation of RM158.6 million.

This article first appeared in The Edge Financial Daily, on March 25, 2015.
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