Announcements

SELAYANG (Sept 17) : Loss making MTD ACPI Engineering Bhd (Valuation: 0.90, Fundamental: 0.80), which lost its bid to be the Project Delivery Partner for the Light Rail Transit 3 (PDP 3), is actively looking for new jobs locally and abroad to replenish its depleting orderbook.

Speaking to reporters after the company's annual general meeting (AGM), its chief executive officer (CEO) Datuk Azmil Khalili Datuk Khalid said the group has an orderbook of RM500 million from both the Construction and Manufacturing divisions, which could support its earnings until July 2016.

"We are tendering jobs locally, as well as overseas," he said, but declining to disclose the contracts value they are bidding for.

"Normally, we don't measure the tenderbook, because it is quite misleading. I can tender hundred over jobs, but what if I get zero," he said.

"Hence we don't use it (tenderbook) as a benchmark, as our capability and capacity. More importantly is what we have secured," he explained.

Nevertheless, he hinted the group is bidding for Mass Rapid Project 2 (MRT 2) and may bid for the work packages for LRT3.

On the international front, it is also bidding for projects in UAE, Singapore, Qatar, Sri Lanka and Philippines. The group derived about 20-25% revenue from overseas operations.

Despite many having said the 11th Malaysia Plan announced by the government gives construction sector a boost, Azmil Khalili has different views.
He said there are handful infrastructure jobs available for bidding.

On the public works, he said projects that are up for tendering, include MRT2 and LRT3.
"Other than that, I do not see other projects," he said.

He pointed out that even for the Pan Borneo Highways in East Malaysia, the Prime Minister had said that 90% of the project was likely to be awarded to contractors in Sabah and Sarawak.

"So there is not much for us to be fighting for, unless we join venture with them," he added.

Given the current headwinds, the construction and engineering firm has warned that the operating environment remained challenging.

"The management will remain vigilant in monitoring and controlling cost to ensure profitability of existing projects," he added.

For the first financial quarter ended June 30, 2015 (1QFY16), MTD ACPI saw its net loss widen to RM5.67 million, from RM1.35 million last year, due to absence of provision of acceleration costs for MRT Package 7.

Revenue for the quarter was down 41.7% to RM49.75 million, from RM85.34 million.

For financial year 2015, its net loss narrowed to RM32.59 million, from RM95.51 million in FY14. Revenue meanwhile, grew to RM350.49 million, against RM328.19 million last year.

As at March 31, 2015, the group's gearing stood at 14%, compared to 41% a year ago.

Shares in MTD ACPI was not traded today, last closed at 21 sen, for a market capitalisation of RM48.64 million.