Mestron eyes 30% Sarawak tower pole orders under JENDELA initiatives

MESTRON Holdings Bhd targets to secure 30% of orders from the total of 1,661 towers that will be constructed under the National Digital Network (JENDELA) initiatives. 

The first phase of JENDELA’s Action Plan will run until end-2022 where 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 4Q 2021 to boost 4G coverage to 96.9% in populated areas by end-2022. Sarawak alone would require 600 towers under this programme. 

Mestron which has a strong track record in Sarawak is expected to benefit from this initiative as demand for its specialty pole products will surge. The company aims for at least 30% of the total tower allocation in the state which is about 180 towers.

“Our strong presence in Sarawak gives us an advantage as we have a proven track record of delivering our products and services,” commented Mestron’s managing director Por Teong Eng.

Por Teong Eng

“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.”

Por further expects Mestron to see massive earnings growth over the next two years given that the gross margin range of around 25% will keep the group on a strong growth trajectory in the near term.

JENDELA’s 4Q FY2021 report ended Sept 30, 2021 shows strong work progress which has exceeded its quarterly targets.

JENDELA remains on track to meet its quarterly and inclusive targets with the committed support of the industry players and relevant stakeholders. 

During the period under review, the 4G mobile coverage has expanded from 91.8% to 94.03% of all populated areas, while mobile broadband speed has increased from 25Mbps to 31.34 Mbps. 

Out of the targeted 7.5 million premises, about 6.4 million premises nationwide now have access to fibre broadband.

JENDELA aims to retire the 3G network by end-2021 to strengthen the 4G network.

Por also projects the strong progress by JENDELA to boost 4G connectivity – coupled with the retiring of the 3G network and faster rollout of 5G services nationwide – to drive demand for the group’s specialty pole products such as high mast and telecommunication monopole that is vital for the development of telecommunication infrastructure. 

Moreover, the Government has also allocated RM7.7 bil through JENDELA to prepare Sabah and Sarawak for the switch to 5G technology with RM3.61 bil channelled to Sabah and RM4.09 bil to Sarawak. 

At 3.40pm, Mestron was unchanged at 32.5 sen with 2.07 million shares traded, thus valuing the company at RM302 mil. – Oct 26, 2021

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