KUALA LUMPUR: Loss-making MTD ACPI Engineering Bhd, which lost its bid to be the project delivery partner for the Light Rail Transit 3 (LRT3) project, is actively looking for new jobs locally and abroad to replenish its depleting order book.

Its chief executive officer Datuk Azmil Khalili Khalid said the group has an order book of RM500 million from both the construction and manufacturing divisions, which can support its earnings until July 2016.

“We are tendering for jobs locally, as well as overseas,” he told reporters after the company’s annual general meeting yesterday,

However, Azmil Khalili declined to disclose the value of contracts they are bidding for.

“Normally, we don’t measure the tender book, because it is quite misleading. I can tender for a hundred over jobs, but what if I get zero?” he said.

“Hence we don’t use it (tender book) as a benchmark [of] our capability and capacity. More importantly, it is [about] what we have secured,” he added.

However, Azmil Khalili hinted that the group is bidding for the Mass Rapid Transit Line 2 (MRT2) project and may bid for the work packages for LRT3.

On the international front, it is bidding for projects in the United Arab Emirates, Singapore, Qatar, Sri Lanka and the Philippines. The group derived about 20% to 25% of its revenue from overseas.

Meanwhile, Azmil Khalili said there are only a handful of infrastructure jobs available for bidding, even though many have opined that the 11th Malaysia Plan announced by the government last year has given the construction sector a boost via several major infrastructure projects.

On public projects, Azmil Khalili said those up for tendering are primarily from MRT2 and LRT3.

“Other than that, I do not see other projects,” he said.

He said even for the Pan-Borneo Highways in Sabah and Sarawak, the prime minister has said 90% of the project is likely to be awarded to contractors in the two states.

“So there is not much for us to fight for, unless we joint-venture with them (contractors in Sabah and Sarawak),” he added.

Given current market headwinds, the construction and engineering firm 

has warned that the operating environment will remain challenging.

“The management will remain vigilant in monitoring and controlling costs to ensure the profitability of existing projects,” he added.

For its first financial quarter ended June 30, 2015 (1QFY16), MTD ACPI saw its net loss widen to RM5.67 million, from RM1.35 million last year, primarily due to lower revenue (down 41.7%) of RM49.75 million from RM85.34 million due to lower turnover in its construction division. 

The group’s loss was also higher due to higher operating costs, and share of losses of associates as compared to a profit in the corresponding quarter last year. 

For the financial year ended March 31, 2015 (FY15), its net loss narrowed to RM32.59 million from RM95.51 million in FY14. Revenue meanwhile, grew to RM350.49 million from RM328.19 million last year.

As at March 31, 2015, the group’s gearing stood at 14%, down from 41% a year ago.

MTD ACPI (fundamental: 0.8; valuation: 0.9) shares closed 1 sen or 4.76% higher at 22 sen yesterday, for a market capitalisation of RM48.64 million.

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This article first appeared in digitaledge Daily, on September 18, 2015.