PETALING JAYA: Mestron Holdings Bhd reached another milestone after its latest contract lifted the order book value of its renewable energy (RE) segment by more than sixfold.
The group’s 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 commencement of the project is subject to the issuance of notice to proceed by FSSB.
With the new contract, Mestron’s RE order book value stands at RM71 million. Mestron will continue to focus on expanding its RE business segment as the group is still actively engaged in tendering for new projects to expand its order book, to ensure sustainable cash flow and revenue going forward.
Mestron managing director Por Teong Eng said in a statement that the contract underscores Mestron’s commitment to expand its business and deliver exceptional 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 added.
The group plays a pivotal role in the LSS project, as seen by the scope of MESB’s responsibilities. These include procuring essential equipment such as photovoltaic modules, mounting structures, inverters with medium voltage power stations, Scada (supervisory control and data acquisition) 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 installation of the equipment.
Beyond conventional project execution, Mestron has diversified its solar offerings to encompass a range of services. They include solar financing, leveraging industry expertise and sustainability commitments to provide flexible financial solutions.
Mestron has implemented 1.3MW of solar projects under the government-endorsed net energy metering scheme. This initiative underscores the group’s commitment to green energy and fortifies its recurring income stream.
According to Por, the group is making significant strides in its commitment to sustainability, diversification strategy, and shareholder value enhancement. Its 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.
With a net profit of RM6.6 million in the first half of financial year 2023, Mestron is confident of exceeding the full year’s RM10 million net profit target.
