Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Jan 18): Kelington Group Bhd said it clinched several new contracts totalling RM118 million during the fourth quarter of last year (4Q20).

In a statement today, the integrated engineering solutions provider said the new contract wins lifted the group's total new orders in financial year 2020 to RM490 million. This marked a new all-time high of new orders secured, the group said, surpassing the previous year's record of RM386 million.

The majority of new orders secured were from the Ultra High Purity (UHP) segment, accounting for about 60% of the total, from China, Malaysia and Singapore, it said.

More than one-third of the new orders were awarded by the largest semiconductor foundry company in China, it said.

"The recovery of the semiconductor industry has been encouraging, and we are seeing resumption of project orders from Malaysia and Singapore for our UHP and Process Engineering division.

"Despite the fluid economic landscape, our project flow from China was doing relatively well, and contributed approximately 35% of total new orders secured in 4Q20, as our major semiconductor client continues to expand its operations. We are positive that the upward momentum will continue in 2021 as semiconductor and electrical and electronics industry players are gradually ramping up their operations to get back on track for expansion," said Kelington chief executive officer Raymond Gan.

Meanwhile, he said the group's industrial gases operations have normalised with production volume resuming to its previous level. However, following the recent announcement on the second Movement Control Order (MCO), it is now  cautiously optimistic about the pace of orders.

"We do not foresee a similar decline in demand for our liquid carbon dioxide, like [during] the first MCO, as most of our major end users such as industry players from construction, manufacturing, etc, are permitted to operate this time around," Gan added.

Shares of Kelington closed five sen or 2.49% higher to RM2.06, for a market capitalisation of RM664.6 million.

Edited ByTan Choe Choe
      Print
      Text Size
      Share