SHAH ALAM: Loss-making intelligent building management systems specialist Metronic Global Bhd is eyeing for US$1 billion (RM4.08 billion) market share of smart city projects across Malaysia, Europe, the US, Middle-East and South East Asian regions in the next three years, according to its CEO, Brian Hoo Wai Keong.
“Our aim is not too far fetch. US$1 billion market share is less than 1% of global investments in smart city technologies, which is expected to rise to US$135 billion by 2021, on the back of rapid telecommunications connectivity and hyper urbanisation,” he told reporters at a media briefing today.
Hoo said the group’s subsidiary Metronic Engineering Sdn Bhd recently inked a three-year memorandum of understanding (MoU) with Hong Kong Exchange-listed China Singyes New Materials Holdings Ltd’s unit Zhuhai Singyes New Materials Technology Co Ltd to secure smart city technology solutions projects.
Singyes is a specialised smart city solutions provider with green building technology, renewable/solar energy solutions and fully integrated ecological agricultural products, having export, manufacturing and research and development base in Zhuhai, China.
“Metronic stands to gain from this collaboration with Singyes, to offer world-class proven smart city technology solutions, connecting infrastructures with Internet of Things and 5G capabilities, to support 11th Malaysia Plan’s smart city initiative, coupled with other local councils, township develop-ments, community parks and integrated government departments, just to name a few.
Currently, Hoo said, Metronic is ifinalising tenders of several potential engineering projects worth up to RM300 million in Malaysia and across the region. The group’s tender book stands at around RM90 million.
Additionally, Hoo said, the group’s ongoing cash call of up to RM42 million from its renounceable rights cum warrants issue will be put to good use to generate more profits for the company by increasing its project tender success rates.
The rights issue will involve the issuance of up to 645.34 million rights shares at an issue price of 6.5 sen per share and up to 484.01 million free warrants.
The bulk of the proceeds raised will be allocated for Phase 1 of its mixed housing development in Kuala Krai, Kelantan, which has an estimated gross development cost of RM29.2 million, and an estimated gross development value of RM34.3 million, with the remainder to be used for working capital for its engineering projects.
For the second quarter ended Dec 31, 2018, the group reported a net loss of RM1.82 million, with a revenue of RM6.79 million. Its net loss for the first six months of the financial year stood at RM3.4 million. The group has changed its financial year end from March 31 to June 30.
