Posted on 14 Apr 2015
"We're interested in the M&E, heavy duty power (generation) part," managing director Ong Choon Lui told reporters after its EGM here yesterday.
He said the company is also bidding for infrastructure, facilities, oil and gas, factories and hospital projects.
Bintai Kinden has an order book of RM500 million in Malaysia and S$480 million (RM1.3 billion) in Singapore, which will last the group for two to three years.
The engineering business currently contributes up to 80% of the group's revenue while the remaining is contributed by its property development business. Ong said the contribution from its engineering business may even go up to 90% within these two years.
"For these two years, engineering sector will contribute more because we want to support the building of a more developed nation. This needs a lot of engineering and contracting input so we want to contribute on that."
Meanwhile, the group is confident that its current financial year ending March 31, 2016 (FY16) will perform better than FY15, driven by its engineering business.
"FY16 will definitely be better than FY15. By FY16, a lot of unforeseen factors within the economy can be much clearer, especially with the introduction of GST (Goods and Services Tax).
"Our results have not been good for the past few years because of the (economic) turbulence but it has been improving. With that, we're able to make the company stronger and face whatever unknown factors coming our way," said Ong.
He said the construction material price is impacted by GST and currency (ringgit) depreciation, which is fairly relevant in the costing of the construction/engineering sector as well as on the pricing.
"We're consolidating our engineering businesses. As one of the bigger engineering firms in the country and the region, we're also concentrating in expanding horizontally our business into Singapore, Indonesia, Myanmar and Vietnam."
He said the group is in the exploratory stage to enter Myanmar, a new market that it aims to make a presence in the next one to two years.
"It depends on the political and economic growth of the country. If there's a sudden spur of economic activities, there'll be a need for more hotels, office buildings, industrial parks and this will be a time for Bintai to participate," said Ong.
Yesterday, Bintai Kinden shareholders approved its proposed private placement and rights issue exercise.
For the third quarter ended Dec 31, 2014, the group registered a net profit of RM6.09 million but saw a net loss of RM3.75 million for the nine months period.
