Thursday 28 Mar 2024
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KUALA LUMPUR (June 25): Integrated engineering solutions provider Kelington Group Bhd has secured new orders worth RM104 million, bringing the group’s accumulated value of new orders secured year-to-date to RM181 million.

"The increase in new orders were contributed by several contract wins totalling RM104 million and were primarily from the Ultra High Purity (UHP) segment for Kelington to provide specialised engineering services for the semiconductor and electronics companies," Kelington said in a statement today.

It added that most of the new contract wins were from Malaysia followed by Singapore, China and Taiwan.

"The new contracts will be completed within six to nine months and are expected to contribute positively to Kelington’s financial performance for the financial year ending December 31, 2018 (FY2018) and FY2019," it said.  

On top of projects carried forward from the previous year, the group's total outstanding order book now stands at RM285 million, Kelington said.

Of that, the UHP segment contributes the largest portion at 51%, followed by the process engineering segment at 38% and general contracting segment at 11%.

Kelington's chief executive officer Raymond Gan said the company is enjoying a better project mix as the bulk of the new orders are from the UHP and process engineering segment, which typically carry higher profit margins.

While the group is encouraged by the new orders coming in, it is not slowing down on its bidding activities, he said.

"We continue to actively look out for new opportunities and projects to increase our orderbook size. Currently, our tender book value is at approximately RM1 billion across our key operating markets," Gan said.

Gan said China will remain an important growth market for the group as it aims to capitalise on China’s increase in semiconductor capital spending.

"We have recently clinched a few notable projects from global renowned semiconductor companies there and are confident of leveraging on our established track record to continue to secure more project orders from China," he added.

In April, Kelington announced RM77.5 million worth of new contracts secured in the first quarter of 2018, whereby the bulk of the new orders came from the UHP segment.

Kelingtion's shares closed 1.5 sen or 1.85% higher at 82.5 sen today, giving it a market capitalisation of RM201.48 million.

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