Pestech eyes 30pc growth in revenue
SUBANG: Integrated power transmission system provider, Pestech International Bhd, targets 30 per cent revenue growth this year, spurred by robust domestic and regional demand for electricity.
"Earnings this year will be driven by projects in the Sarawak Corridor of Renewable Energy (Score) and Peninsular Malaysia, as well as our ongoing projects in Cambodia and Laos," Pestech executive director-cum-chief executive officer Paul Lim told reporters after an extraordinary general meeting to pass a resolution on the proposed dividend reinvestment plan (DRP) yesterday.
For the financial year ended December 31 2012, Pestech registered RM136 million revenue compared with RM132 million the previous year.
This means the company will have to grow its revenue by RM40.8 million to meet its target.
The strong local and regional industry demand is expected to fuel growth.
"The growth of energy requirement in Southeast Asia will be sustainable for the next five to 10 years. There will be more spending in utility infrastructure.
"We also see our client portfolio expanding beyond the utilities sector to industrial and commercial customers," he said.
With this in mind, Lim is eyeing RM500 million in annual orders in the next two to three years.
The company's projects in hand are worth RM240 million, which could sustain its operations until 2015.
Meanwhile, with the establishment of the DRP, Lim hopes to reserve funds for working capital to accelerate growth and expansion plans.
Under the DRP regime, shareholders have the option of reinvesting their dividends in new shares.
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