PETALING JAYA: Mestron Holdings Bhd aims to secure orders amounting to 30% of the total of 1,661 towers that will be built to boost 4G mobile coverage under the National Digital Network (Jendela) initiatives.
The first phase of Jendela’s Action Plan will run until the end of 2022 in which a total of 1,661 towers will be built through open tenders in rural areas nationwide. This will be done through the appointment of Designated Universal Service Provisions beginning from the fourth quarter this year to boost 4G coverage to 96.9% in populated areas by end-2022. Sarawak alone will require 600 towers under this programme.
Mestron, which has a strong track record in Sarawak, is expected to benefit from this as demand for its specialty pole products will surge.
Mestron managing director Por Teong Eng said its strong presence in Sarawak gives it an advantage as it has a proven track record of delivering on its products and services.
“We have been supplying to the majority of the contractors in Sarawak. This put us in a good position to win more contracts for works related to the development of these telecommunication towers. We aim for at least 30% of the development of these towers, which is about 180 towers,” Por said.
He added that Mestron will see massive earnings growth over the next two years with these projects, and given that the gross margin range at around 25%, this will keep the group on a strong growth trajectory in the near term.
Por believes the strong progress by Jendela to boost 4G connectivity, coupled with the retiring of the 3G network and faster rollout of 5G services nationwide, will drive demand for the group’s specialty pole products (pix) such as high mast and telecommunication monopole that is vital for the development of telecommunication infrastructure.
