SINGAPORE: PRG Holdings Bhd expects contribution from its energy efficiency (EE) business via newly acquired Energy Solution Global Ltd (ESGL) by PRG’s 50.45%-owned subsidiary Furniweb Holdings Ltd to surpass the contribution of the group’s manufacturing business next year, thanks to its strong order book.

PRG group executive vice-chairman Datuk Lua Choon Hann said its property business will still be the mainstay for the group until 2025, while the manufacturing business has been consistent in the past few years with no “surprise” (ups and downs).

Hong Kong-listed Furniweb is a Malaysia-headquartered manufacturer of covered elastic yarn and furniture webbing. For the six months ended June 30, the manufacturing business posted a revenue of RM57.7 million, while it recorded a revenue of RM116.2 million in FY21.

PRG sees growing demand and an expanding market in the EE business both in Malaysia and Singapore. PRG recently completed the acquisition of the remaining 62.75% stake in Singapore’s ESGL for HK$58.19 million (RM31.42 million) via Furniweb on Aug 29.

The acquisition of ESGL is part of the group’s long-term strategy to venture into the heating, ventilation and air-conditioning, energy management system (HVAC-EMS) industry, an EE business. ESGL will enhance PRG group’s earnings going forward judging from its strong track record and healthy order book on hand.

Lua said EE is an upcoming trend as Malaysia plans on launching the voluntary carbon market and imposing carbon tax, with banks already financing green loans given the drive towards a green economy.

“The moment the government takes a firm stand on implementing this (EE) policy, this (EE industry) will be a boom. We see good prospects in this business. A lot of public companies are introducing this (EE) business, especially solar companies. We’re already in the (EE) market for 10 years and we have the first mover advantage. This is what we want to position ourselves in Malaysia,” Lua told reporters during a media trip here this week.

ESGL’s two wholly owned subsidiaries Measurement & Verification Pte Ltd (M&V SG) and Measurement & Verification Sdn Bhd provide smart energy saving solutions by designing and installing HVAC-EMS systems for buildings that aim to achieve optimal energy consumption, lower greenhouse gas emissions and reduction in energy costs.

M&V SG is an energy services company accredited by the National Environment Agency of Singapore. M&V SG manages 127,000 refrigeration tonnes of installed air-conditioning capacity for data centres, semiconductor factories, airport terminals, hotels, shopping malls, and office buildings in Singapore. It currently has an order book of S$50 million (RM161.34 million) that will last for the next two years.

M&V SG managing director Steven Kang is targeting to grow its net profit and revenue by 10% per year through increasing recurring income by growing performance-based service contracts; riding the wave of EE and data centre infrastructure management (DCIM) for data centres where entry barriers are high and it is well differentiated. It is also eyeing commercial airside EE upgrading, airside energy management systems and industrial chiller plant EE upgrading.

Kang said it plans to further M&V’s expansion into Malaysia particularly in Johor (data centre projects) and Kuala Lumpur (commercial building projects). It is bidding for a DCIM job in Johor. M&V’s past projects in Malaysia include Menara Ken TTDI, Klang Parade and Swiss Garden Hotel.

“We’ll also consider acquiring small to mid-size air-conditioning companies in Malaysia,” he disclosed.