SARAWAK-BASED engineered solutions provider Pansar Bhd has successfully made a strategic foray into the construction industry following its acquisition of Perbena Emas Sdn Bhd.
Perbena Emas’s which has an order book totalling RM2 bil to-date will ensure Pansar a smooth diversification into the construction and civil engineering sphere by leveraging the former’s 43-year track record in construction and infrastructure development.
Perbena Emas has undertaken numerous key infrastructure projects such as the recently secured design and construction of UNIMAS Teaching Hospital in Kota Samarahan (Sarawak) totalling RM485.99 mil as well as the construction and completion of Batang Lupar 1 Bridge in Samarahan valued at RM848.75 mil which are expected to support the coimpany’s earnings visibility over the next two to four years.
“Combined with Pansar’s existing orderbook of RM223 mil comprising design, construction, supply, and engineering contracts from the group’s engineering division, the addition of Perbena Emas brings the enlarged Pansar group’s total secured orderbook value to RM2.2 bil,” Pansar pointed out in a statement.
“The acquisition of Perbena Emas marks a significant milestone for the future development and growth of our group,” commented a Pansar spokesperson.
“With the combined earnings potential and the benefits of vertical integration, we envisage the enlarged Pansar group becoming a leading player in East Malaysia’s civil and infrastructure development.”
The management of Pansar is of the view that the construction sector in Sarawak is expected to prosper over the next few years, driven by the RM22 bil in spending for infrastructure projects by the Sarawak state government, including the Second Trunk Road, coastal road upgrades, water grid programmes, rural electrification projects and telco towers.
Going forward, Pansar anticipates that the revenue and earnings stream from Perbena Emas’ core business of construction and construction-related activities to contribute substantially to the group’s net profit.
At the close of this morning’s trading, Pansar was down 1.5 sen or 2.07% to 71 sen with 238,900 shares traded, thus valuing the company at RM329 mil. – April 13, 2021