KUALA LUMPUR: Mestron Holdings Bhd's (MHB) wholly-owned subsidiary, Mestron Engineering Sdn Bhd (MESB), secured a letter of award (LoA) to undertake the procurement of equipment and materials for a large-scale solar (LSS) project valued at RM59.99 million.
The LoA was received from Fabulous Sunview Sdn Bhd (FSSB), a wholly-owned subsidiary of Sunview Group Bhd.
The project will start once FSSB gives the green light to proceed.
With this new contract, MHB's renewable energy (RE) orderbook value is RM71 million.
The company continues to focus on expanding its RE business segment as it is still actively engaged in tendering for new projects to expand its order book further, ensuring a sustainable cash flow and revenue going forward.
MHB managing director Por Teong Eng said the contract underscores the company's commitment to expand its business and deliver value in the RE business through its engineering expertise.
"This LoA is a testament to our strong track record in delivering excellence in engineering and construction.
"We are honoured to be entrusted with such a significant project, and we remain committed to creating sustainable, cutting-edge solutions that align with our vision of a greener future," he said in a statement.
MHB plays a pivotal role in the LSS project, as seen by the comprehensive scope of MESB's responsibilities.
These include procuring essential equipment like photovoltaic modules, mounting structures, inverters with medium voltage power stations, supervisory control and data acquisition (SCADA) systems, cabling, and lightning protection to form a complete system.
Additionally, MESB is responsible for managing logistics, conducting equipment testing, ensuring equipment maintenance and security during the sub-contract works period, and executing the equipment installation.
MHB has diversified its solar offerings to encompass a comprehensive range of services.
This includes solar financing, leveraging industry expertise and sustainability commitments to provide flexible financial solutions.
MHB's expertise extends the entire solar project lifecycle, offering engineering, procurement, construction, and commissioning (EPCC) services, ensuring precise and efficient project execution.
Moreover, the company has ventured into project ownership, allowing clients to benefit from MHB's industry know-how while enabling it to invest in and manage solar assets, generating long-term value and recurring income streams.
This integrated approach redefines MHB's role in the industry, reinforcing its position as a partner for sustainable energy solutions.
MHB has also implemented 1.3 MW of solar projects under the government-endorsed net energy metering (NEM) scheme.
This initiative underscores MHB's commitment to green energy and fortifies its recurring income stream.
According to Por, MHB's expansion in the RE business, the LSS project, and the solar integrated ecosystem signifies a crucial stride toward a more environmentally sustainable and energy-efficient future.
The financial health of MHB has also been commendable, with net profit standing at RM6.6 million as of six months (6M) of FY23.
Por is confident of exceeding the full FY23's RM10 million net profit internal target.
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