AT Systematization fails to get 1,000 tonne incinerator job in Kepong

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KUALA LUMPUR (Oct 29): ACE-listed AT Systematization Bhd, which provides industrial automation solutions, announced on Bursa Malaysia this evening that it has failed in its bid to construct the controversial waste-to-energy incinerator in Taman Beringin, Kepong.
The Penang-based group said its bid, which was through special purpose vehicle ATS Biotech Sdn Bhd that was formed expressly for the job through a joint-venture agreement with China-based Anhui Shengyun Environment Protection Group Co Ltd, Promosi Mantap Sdn Bhd, and Md Wira Dani Abdul Daim, was unsuccessful in bidding for the said project.

The mass-scale incinerator is a project managed by the Public Private Partnership Unit under the Prime Minister's Office, in collaboration with the Urban Wellbeing, Housing and Local Government Ministry (KPKT).
AT Systemisation was one of 33 bidders vying to build the incinerator, which is expected to have a processing capacity of 1,000-tonne per day, is said to cost some RM800 million.
The Edge Financial Daily had reported on Sept 22 that four firms - UEM Environment Sdn Bhd, DRB-Hicom Bhd, Malaysian Recources Corp Bhd (MRCB) and Puncak Niaga Holdings Bhd - have been shortlisted to build the said incinerator.
UEM Environment was reported as teaming up with Japan's Mitsubishi Heavy Industries Ltd, while Puncak Niaga is partnering Japan's Hitachi Zosen Corp.

Additionally, DRB-Hicom is partnering MMC Corp Bhd's 51%-owned subsidiary Malakoff Corp Bhd and Japan's Sumitomo Corp, while MRCB is collaborating with South Korea's Hyundai Rotem Co.
In July, KPKT Minister Datuk Abdul Rahman Dahlan said the award of the incinerator project will be announced in mid-2015, pending a detailed environment impact assessment, which is currently being undertaken by Universiti Teknologi Malaysia.
Meanwhile, in a separate filing, AT Systemization said its net profit for the second quarter ended Aug 31, 2014 (2QFY15), has jumped 23-fold to RM499,000 or 13 sen per share from RM21,000 or one sen per share a year ago, on higher order of fabrication of industrial and engineering parts business. Revenue jumped 30% to RM6.84 million from RM5.26 million previously.

For the cumulative six months ended Aug 31 (1HFY15), AT Systematization registered a net profit of RM1.1 million from a net loss of RM456,000 in 1HFY14, while revenue grew 19% to RM13.16 million from RM11.05 million.

Shares in AT Systematization have been trending downwards since peaking at 32.7 sen on Oct 24 last year. It has fallen 2.68% year-to-date and closed unchanged at 9.5 sen today, giving it a market capitalisation of RM37.4 million.