SPECIALTY pole maker Mestron Holdings Bhd has secured an order of S$3.2 mil (RM10.3 mil) from Tamaco Pole Manufacturing Pte Ltd, marking its biggest order this year from a single client.
Equivalent to about 22% of the group’s revenue in FY2021, the purchase order (PO) of S$3.2 mil raises the group’s total order book size to RM63 mil.
With over 40 years of experience in the industry, Tamaco Pole is involved in the supply of lighting steel pole-related business and consultancy advisory services.
“This PO has provided us with opportunities to diversify our earnings base and reduce the reliance on our home market, Malaysia,” commented Mestron’s managing director Por Teong Eng.
“We believe this is a great opportunity to expand our client base and tap on the rising demand for our products beyond Malaysia.”
Based on Mestron’s annual report for its financial year ended Dec 31, 2021 (FY2021), about 93% of its revenue was generated from Malaysia with less than 2% coming from Singapore.
Given Tamaco’s strong track record, Por is confident that an established relationship with the Singapore-based company will create a long-term relationship that will add value to Mestron.
According to him, the latest PO may potentially lead to bigger orders from Tamaco or new contracts from other industry players in Singapore.
In terms of the delivery of the products, Mestron will progressively deliver and ship the products to a location that both Mestron and Tamaco Pole mutually agreed. According to Mestron’s Bursa Malaysia filing, delivery will be done upon the receipt of a delivery memo from time to time, subject to full delivery by the end-2023.
“We are looking forward to fulfilling the orders from Tamaco Pole. The full delivery which will be completed by end of next year will help to support our revenue growth in the near term,” enthused Por.
“With this PO, we will establish our network and presence in Singapore, allowing us to further tap on long-term opportunities that Singapore can offer.”
At the close of today’s trading, Mestron was up 0.5 sen or 1.09% to 46.5 sen with 13.79 million shares traded, thus valuing the company at RM433 mil. – Dec 5, 2022
