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Mestron secured orders worth RM17.5mil from JENDELA since rollout

New Straits Times logo New Straits Times 5 days ago NST Business
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KUALA LUMPUR: Mestron Holdings Bhd (MHB) has generated more orders than expected during the first five months (5M) of the year despite the Covid-19 disruption in the first quarter (Q1) of this year.

The company recorded a total order book of RM17.5 million during the 5M as the rollout of telecommunication infrastructure gathers speed.

These order books came from various customers, namely Smartgen Technology Sdn Bhd, Hytro Vista Sdn Bhd and OCK Setia Engineering Sdn Bhd.

MHB managing director Por Teong Eng said the company's prospects had shown a sharp improvement in orderbook during the first five months of this year.

"The pickup of these orders is supported by the faster rollout of the telco projects following the reopening of the economy," he said in a statement today.

This is in line with the accelerated progress in implementing the national digital infrastructure plan, Jalinan Digital Negara (JENDELA).

In a statement released by Digital Nasional Bhd (DNB) in Q1 2022, various federal, state, and local authorities and government agencies have helped expedite the rollout of the 5G network in Malaysia.

Previously, DNB's chief technology officer Ken Tan said in a statement that these initiatives helped DNB stay on track for its 5G coverage target of 37.9 per cent of populated areas by the end of this year.

The surge in momentum for the rollout of 5G will benefit MHB, which generates revenue mainly from the sales of its standard poles and speciality poles within the telco segment.

The projects that MHB was awarded during the 5M were under the JENDELA Phase 1 Project and are expected to be delivered by August 2022.

"It has been a busy year for us as we have won three contracts from three different telco infrastructure players.

"These are just the ones that we have contracted in 2022, and the company is looking forward to tapping into the growing demand for its speciality poles within the telco segment amidst the rollout of the 5G network nationwide," Por said.

According to Por, MHB aims to win another RM20 million contracts over the next six months from the telco segment.

The strong demand will be supported by the rollout of the 5G network in Malaysia.

Por expected the company's strong order books to sustain revenue growth for the rest of the financial year ending 31 December 2022 (FY22).

MHB targets to win another RM20 million worth of orders over the next six months amid strong demand for its telco segment, supported by the rollout of the 5G network nationwide.

MHB's revenue for Q1 FY22 surged by 84.1 per cent year-on-year (YoY) to RM21.4 million, mainly due to an increase in sales demand for its standard poles and speciality poles.

MHB's telco segment mainly drives the increase in sales for its speciality poles.

© New Straits Times Press (M) Bhd

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