KUALA LUMPUR (April 11): Boustead Heavy Industries Corporation Berhad (BHIC) expects to achieve growth of 10% in its net profit for the current year.

“If we keep focused and keep costs down at every level of operation, I think we can achieve at least 10% growth, if not better,” said BHIC chairman Tan Sri Lodin Wok Kamaruddin.

“The key performance indicator given to management is nothing less than 15% per year because that is the return we expect from the Armed Forces Fund Board’s (LTAT) investment in this company,” he told a press conference after the group’s annual general meeting.

BHIC’s net profit tumbled 86% to RM10.58 million for the year ended Dec 31, 2017 (FY17) from  RM76.7 million in FY16.  Revenue fell 10% to RM277.65 million from RM307.52 million.

BHIC is building four Littoral Mission Ships (LMS) and six Littoral Combat Ships (LCS) for the Royal Malaysian Navy with a remaining orderbook of about RM6 billion from a total price tag of RM9 billion.

“Our orderbook is about RM5 billion and that’s from our Boustead Naval (BN) Shipyard and with our other associate company, we have about RM1 to 1.2 billion for our orderbook” said Lodin

Group managing director Tan Sri Ahmad Mohd Nor said BHIC is hoping to continue capitalising on the prospects offered by RMN’s 15-to-5 transformation programme.

“This should translate into the commissioning of new vessels and more MRO works for BHIC’s shipyards,” he added.

He said BHIC is also conducting the maintenance, repair and overhaul (MRO) of RMN’s submarine KD Tunku Abdul Rahman which is expected to be completed in early May.

The group is pursuing potential contracts with the Malaysian Maritime Enforcement Agency and the Royal Malaysia Police.