Kelington’s China unit bags RM64m in contracts

This article first appeared in The Edge Financial Daily, on February 13, 2020.
Kelington’s China unit bags RM64m in contracts
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KUALA LUMPUR: Kelington Group Bhd’s subsidiary in China has bagged several contracts worth RM64 million from the country’s largest semiconductor foundry company.

The group said wholly-owned Kelington Engineering (Shanghai) Co Ltd will undertake specialised engineering works for its wafer fabrication plants in places such as Beijing and Tianjin.

The projects will be completed in two years and are expected to contribute positively to the group’s earnings for the financial year ending Dec 31, 2020 (FY20) and FY21, the group added in a statement.

“We are encouraged by the contracts won as it further strengthens our market position in China, despite the challenging operating landscape today.

“The projects were awarded to us by a repeat customer whom we have a long-standing relationship with,” said Kelington chief executive officer Raymond Gan. “We remain confident on growing our presence in China as we believe the opportunities in the semiconductor sector there remains attractive.”

Gan said the outlook for Kelington remains promising as the group got off to a good start in FY20 with about RM105 million worth of total new orders secured in the first two months of the year. This accounts for about one third of the RM386 million total new orders secured in FY19.

“Moving forward, we will continue to work on sustaining the growth momentum through our expansion in the industrial gas sector while actively bidding for more projects,” It added.

Shares in Kelington rose four sen or 3.25% to RM1.27 yesterday, valuing the group at RM395.55 million.