Monday, May 26, 2014

ETI Tech targets new revenue streams

By Sharen Kaur
Published in NST on May 26, 2014

PETALING JAYA: ETI Tech Corp Bhd, which is tipped to be taken over by Zenith Construction Sdn Bhd, is focusing on renewable energy and construction jobs in a bid to turn profitable.

  Chief executive officer Datuk Phang Chow Huat is  confident that the company  can be turned around this year or next.
   He said ETI Tech is  discussing with the government on building solar farms in Kedah.
    According to  Phang, ETI Tech has built a few solar farms in Kedah,  with the most recent  costing RM5 million.
   "We are building for third parties and  the latest project will contribute positively to  company's revenue and pre-tax profit this year.
     ETI Tech recorded a full-year net loss of RM9.7 million for fiscal year 2013.
   The company, which has a market capitalisation of RM77.7 million based on last Friday's closing  price of 10 sen, is involved in solar and battery manufacturing and has a plant in Kulim, Kedah.
    It developed the world's first lithium-polymer battery system for solar-powered homes more than four years ago.
    The lithium ion battery is  environment-friendly and can store more power than  the lead acid battery.
   Phang said the company may look at building more production plants, in line with its growth strategy.
   Newly-appointed executive director Zarul Ikhwan Zarul Ahmad, who is the son of Zenith Construction founder Datuk Zarul Ahmad Zulkifli, said ETI Tech will bid for  more construction projects, including  road development.
   The company recently won its first construction job, worth RM70 million, to build 500  apartment units in Alor Star.
    It is understood that ETI Tech is expected to win another construction job soon  worth RM35 million.
   "ETI Tech's  main revenue contributor is solar and battery manufacturing, and we hope to change that, with construction contributing the bulk to our earnings," he said at a media briefing last week.

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