AFTER its share price spike fizzled out with its 5G Infra Tech venture quieten down after much fanfare, radio frequency identification (RFID) solution specialist SMTrack Bhd seems to be exploring other viable options judging from its latest foray into the oil & gas (O&G) service realm.
This comes after the company via its wholly-owned subsidiary SMT Turbojet Resources Sdn Bhd inked a project management consultancy (PMC) agreement on June 23 with construction-based Menara Rezeki Properties Sdn Bhd to perform services for the re-development project in Kampong Bharu.
Yesterday (July 6), the ACE Market-listed SMTrack entered into a project management consultancy agreement with Eight Safety Consultancy Sdn Bhd (8SC) via SMT Turbojet to serve as an administrative consultant for the O&G industry safety product purchase process or any traceability solutions compatible with the system to targeted end-users.
SMTrack’s deputy executive chairman Azmi Osman described the latest venture as in sync with the company’s strength in the RFID solutions.
“This will help us to be an effective project administration management support for the O&G industry safety product purchase processor or any traceability solutions compatible with the system,” he commented.
“Considering the importance of safety within the O&G industry, it is vital for a traceability solution to the product purchase process. We are looking forward to the PMC job as this will widen our customer base to include the O&G players which are vital to the supply of energy globally.”
8SC’s CEO Syed Ansar Mohamed Kalik expects the collaboration to further enhance transparency of the O&G industry’s safety product purchase processor.
“In our industry, it is vital to have reputable partners such as SMTJ to build on our track record. We believe the agreement will add value to both players and set a foundation for future collaborations,” Ansar pointed out.
Meanwhile, SMTrack’s Azmi said the contract will enhance the group’s earnings base going forward. “With a wider customer base including industries with a strong regulatory framework such as the O&G, this will help us win more projects within the industry going forward,” he noted.
Under the agreement inked with 8SC, SMT Turbojet is entitled to 5% to 10% of the total project value profit which will help to diversify the group’s revenue streams.
At the close of yesterday’s (July 6) trading, SMTrack was up 0.5 sen or 7.69% to 7 sen with 9.87 million shares traded, thus valuing the company at RM57 mil. – July 7, 2022
