Metronic Global will announce more contracts in due course
by FARA AISYAH/ pic credit: www.metronic-group.com
METRONIC Global Bhd’s wholly-owned subsidiary, Metronic Engineering Sdn Bhd, has accepted a RM18.7 million contract from Samsung C&T Corp UEM Construction JV Sdn Bhd to provide audio visual and information technology systems (AV-ICT) for the iconic Merdeka PNB 118’s project.
The subcontract commenced on June 13, 2019, and is expected to be completed by Dec 14, 2020.
“The Merdeka PNB 118 project will add to Metronic’s reputation and help us scale up in terms of brand, commitment and expansion as we are confident to provide quality products and services to meet world stringent standards,” Metronic Global ED and CEO Brian Hoo said in a statement yesterday.
He said the company is on track to meet its aim for US$1 billion (RM4.17 billion) in project value on smart city projects across Malaysia, Europe, the US, Middle-East and South-East Asia regions in the next three years.
“Our aim is not too far fetched. 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, according to world renowned research firm International Data Corp Worldwide Semi-Annual Smart Cities Spending Guide, on the back of rapid telecommunications connectivity and hyper-urbanisation,” Hoo stated.
He said Metronic Global will announce more contracts in due course.
The company’s orderbook currently stands at RM84 million.
For the fourth quarter ended June 30, 2019 (4QFY19), Metronic’s net loss widened to RM9.39 million, from RM1.06 million in the previous year’s corresponding period, mainly attri-buted to a provision for impairment totalling RM6.2 million.
In an exchange filing last month, Metronic Global made a provision for impairment on its investment property in Beijing, China, amounting to RM15.8 million whereby a total of RM11.8 million was offset against revaluation reserve account.
This is in pursuant to the announcement made by the group on June 3, 2019, whereby based on investigation, the said property has been found transferred to a third party without consent and/or board authorisation. The transaction occurred in 2016 during the previous management, it noted.
The group added that the provision for impairment was made as per advice from its auditor in accordance with the approved accounting standards.
Metronic Global will pursue all avenues under the laws as advised by its legal advisor to recover the said property and enforce its interest in the property.
Its quarterly revenue increased 39.63% year-on-year (YoY) to RM11.38 million from RM8.15 million in 4QFY18.
The counter closed one sen or 7.69% higher to seven sen, giving it a RM79.28 million market capitalisation.