KUALA LUMPUR: The future is electric for Pestech International Bhd (Pestech) as the company reported a 68 per cent jump in earnings in the second quarter ended December 31, 2017.
The company expects its investment in rail electrification technology to open up new business opportunities in Malaysia and other neighbouring countries.
Pestech, during the quarter under review, had completed the RM10.3 million purchase of Colas Rail System Engineering Sdn Bhd and sealed a collaboration with France’s Colas Rail in the area of urban rail project.
This is particularly for the Mass Rapid Transit 2’s (MRT 2) Sungai Buloh-Serdang-Putrajaya Line,
The group had also secured its first regional rail contract for the Bangkok BTS extension from Bang Sue to Rangsit of the Red Line project.
“The investment into the establishment of rail electrification know-how and assets has opened up growth prospects for the group to serve this sector within Malaysia and further into the Asean region,” it said.
For the quarter just ended, the company posted a net profit of RM22.17 million on revenue of RM278 million.
“Higher revenue and profit for the current quarter were mainly contributed by project segment with current order book totalling RM1.88 billion,” it said in a filing with Bursa Malaysia today.
Pestech said the build-up of electrical infrastructure in Malaysia and in the Asean region continued to be strong, driven by strong economic expansion and encouraged by the One Belt One Road initiative.
“The management is confident that the group’s order book growth derived from power distribution and transmission and rail electrification sectors in the Asean region will be sustained,” it said.