KUALA LUMPUR: Advancecon Holdings Bhd is broadening its focus beyond solar renewables by exploring opportunities in mini-hydro and energy-efficiency projects.
The company is also considering mergers and acquisitions locally and regionally to expand its renewable energy portfolio and reinforce its commitment to environmental, social and governance goals.
“We are in the early stages of exploring this opportunity and will continue to study each opportunity’s risks and return dynamics as and when available locally and regionally. These hydro projects are expected to diversify our renewables asset portfolio and revenue streams and support our financial growth over time,“ Advancecon group CEO Datuk Phum Ang Kia told SunBiz.
He said Advancecon’s recent completion of a large-scale solar photovoltaic farm and plans to expand to 50MWp in the coming year will allow the company to generate a stable and predictable revenue stream while also contributing to its sustainability goal.
Phum pointed out that the group’s vision is to be a global infrastructure and earthwork contractor.
To achieve this, he said, the company will continue exploring various opportunities in the marketplace within the group’s existing businesses to enhance revenue and profitability in the next five years. “Notwithstanding the current challenges, we will continue to work hard to grow our construction and support services revenue and recurring income assets to achieve at least 50% of group revenue.”
Phum highlighted that by enhancing operational efficiency through investments in automation, technology, and new machinery, the group aims to control costs and focus on optimising resources to minimise waste.
To support its expansion plan, he said, the group is exploring sukuk and green financing options and collaborating with local government agencies and domestic players to share expertise in cost optimisation and achieve sustainable growth.
For the third quarter ended Sept 30, 2024, Advancecon achieved a net profit of RM0.004 million, a notable recovery from the RM0.61 million loss in the same quarter last year. This reflected a 101% year-on-year improvement. Profit before tax increased by RM0.09 million, or 26%, reaching RM0.45 million.
However, the group’s revenue declined by 22% year-on-year to RM95.81 million, a drop of RM26.84 million.
In an exchange filing, Phum said revenue for the quarter reflected a temporary dip due to the completion of several key projects, leading to fewer ongoing projects during this period. However, the construction business segment remains a robust growth driver, contributing RM40.2 million, or 41.9% of the group’s revenue, for the quarter.
“We are streamlining operations across all the business segments and continuously improving efficiency by investing in automation, technology and new machinery to improve project management and execution efficiency. We are continuing to strategically focus on and expand our recurring income key business segments, such as quarry, renewable energy, property development, and the centralised labour quarters.
“In addition, we target to commence the construction work for the Silver Valley Technology Park project in Perak in the upcoming year, which is expected to contribute positively to the revenue and earnings of the group in the mid-to-long-term,” Phum said.
