Minetech Resources Berhad Archives

Minetech Records RM128.14 Million Revenue in 12M FY2024 amidst Challenging Market Conditions

Company Demonstrates Resilient Sets of Revenue and Operational Stability in Q4 FY2024

Minetech Resources Berhad (Minetech or the Company), is pleased to report a solid set of financial performance for the fourth quarter ended 31 March 2024 (Q4 FY2024). Despite a challenging market environment, Minetech achieved a revenue of RM33.47 million for the quarter, reflecting the Company’s resilience and operational strength. The Company recorded a gross profit of RM3.62 million in Q4 FY2024, an improvement from RM3.40 million in the corresponding quarter of the previous year (Q4 FY2023).

Encik Abang Abdillah Izzarim, the Executive Chairman of Minetech

For Q4 FY2024, both Civil Engineering division and Bituminous Products see a slight decrease of revenue to RM23.01 million and RM7.6 million respectively. However, the Energy segment, representing Minetech’s venture into renewable energy, contributed RM1.78 million in revenue for Q4 FY2024, marking a successful entry into the renewable energy sector.

For the financial year ended 31 March 2024 (“FY2024”), Minetech reported a revenue of RM128.14 million, an increase from RM123.77 million in the previous year. The gross profit for the year was RM14.97 million, up from RM13.42 million in the previous year. The Company recorded a loss before tax of RM6.85 million, an improvement from the RM7.92 million loss in the previous financial year. The net loss for the financial year was RM8.82 million, a notable improvement from the net loss of RM11.87 million in the previous year. This improvement is primarily attributed to enhanced operational efficiencies, stringent cost management practices, and strategic project completions that reduced overall expenditure. The Company also benefited from increased contributions from the Energy segment, which helped offset declines in other areas.

A significant highlight for Minetech Construction Sdn. Bhd. (“MCSB”), a wholly-owned subsidiary, is the renewal of a substantial contract with Able Return Sdn. Bhd. and Damar Consolidated Exploration Sdn. Bhd. for the Selinsing Gold Mine Project, valued at approximately RM230.0 million. This renewal, effective from 1 January 2024 to 31 December 2026, signifies an increase in production volume and contract value, reflecting the expanded mining area and operational scope. This contract sets a positive trajectory for Minetech’s future projects and reinforces the Company’s capability and commitment to growth.

Encik Abang Abdillah Izzarim, the Executive Chairman of Minetech, expressed his perspective on the Company’s performance, stating, “While the quarter presented several challenges, our strategic direction and adaptability have proven effective. The contract renewal for the Selinsing Gold Mine Project is a testament to our capabilities and commitment to growth. We remain focused on driving sustainable value for our stakeholders as we navigate the evolving market landscape.”

Adding to this, he highlighted the Company’s goal of turning profitable: “Our primary objective moving forward is to steer Minetech towards profitability. Through strategic initiatives, cost management, and operational efficiency, we are dedicated to transforming our financial performance and delivering long-term value to our shareholders.”

As at 5:00 P.M. 30 May 2024, the share price of Minetech closed at RM0.135, reflecting a market capitalisation of RM241 million.

Minetech Resources Berhad https://minetech.com.my/

Minetech Posts 46% Growth in Revenue for 4Q

LBT for FY2023 halved as civil engineering and bituminous products businesses continue to show earnings improvement

Minetech Resources Berhad, a civil engineering specialist and bituminous products manufacturer, today announced that the Company reported a 46.1% increase in revenue to RM36.9 million for the fourth quarter ended 31 March 2023 (4Q FY2023) compared with revenue of RM25.2 million in 4Q FY2022.

Matt Chin, Executive Director of Minetech

The Company registered a loss before tax (LBT) of RM7.2 million for 4Q FY2023 compared with LBT of RM12.1 million in 4Q FY2022. For FY2023, the Company recorded a 45.4% growth in revenue to RM124.2 million compared with RM85.4 million in FY2022 while LBT for the period under review has been halved to RM10.2 million from RM24.3 million.

For the quarter under review, the civil engineering division recorded revenue of RM23.4 million with an operating profit of RM2.3 million compared with revenue of RM14.7 million and operating profit of RM0.9 million in 4Q FY2022. The bituminous products division’s revenue increased to RM8.6 million with an operating loss of RM0.2 million compared with revenue of RM5.1 million and an operating profit of RM0.5 million while the services division’s revenue decreased to RM0.4 million with an operating loss of RM0.6 million compared with revenue of RM1.7 million and operating loss of RM4.8 million in 4Q FY2022.

For FY2023, the Company’s adjusted EBITDA turned positive at RM0.75 million compared with adjusted negative EBITDA of RM11.2 million in FY2022.

Matt Chin, Executive Director of Minetech (Link)Matt Chin, Executive Director of Minetech, said, “The civil engineering and bituminous products businesses continue to be the significant contributors to revenue. For the civil engineering business, the much higher contribution to revenue of RM14.9 million from the Selinsing gold mine compared with RM8.9 million a year ago was due to an increase in work volume. The increase in sales of coating enamel resulted in higher revenue for the bituminous products business while the operating loss was due to one-off repair and maintenance cost.”

“The services business has seen an improvement with a much-reduced operating loss despite the decrease in revenue. The lower revenue was mainly due to lower supply of manpower, storage tank maintenance services and lower number of remittance transactions.”

“The Company remains focused on growing the new businesses that we have diversified into over the past three years, which includes financial technology and renewable energy (RE) that can help sustain earnings and growth over the longer-term. For the RE venture, we won a contract valued at RM36.7 million in January this year from Tesdec Hydropower Sdn Bhd for the development of a 3MW mini hydropower plant in Besut, Terengganu. We are cautiously optimistic for the Company’s outlook given the better-than-expected economic growth of 5.6% in 1Q that was underpinned by broad-based growth across all sectors of the economy.”

Minetech Resources Bhd: 7219 [BURSA: MINE], https://minetech.com.my/

Minetech Posts 58% Gain in 3Q Revenue to RM36 Million

Company’s losses narrow significantly, and recorded its highest improvement of 166% EBITDA

Minetech Resources Berhad, a civil engineering specialist and bituminous products manufacturer, today announced that the Company registered a 58.6% gain in revenue to RM36.3 million for the third quarter ended 31 December 2022 (3Q FY2023) compared with revenue of RM22.9 million in 3Q FY2022.

For the quarter under review, the Company recorded profit before tax (PBT) of RM0.2 million compared with loss before tax (LBT) of RM3.1 million while EBITDA has recorded its highest improvement of 166% compared to 3Q FY2022.

By segment, the civil engineering division registered a 41% rise in revenue to RM22.0 million in 3Q FY2023 compared with RM15.6 million in the corresponding quarter of the previous financial year. The bituminous products division’s revenue grew by a significant 150% to RM10.0 million compared with RM4.0 million while the services division recorded a 60% increase in revenue to RM3.2 million compared with RM2.0 million.

For the nine months ended 31 December 2022 (9M FY2023), the Company registered a 45.3% increase in revenue to RM87.3 million compared with RM60.1 million in the corresponding period of the previous financial year. LBT narrowed significantly by 76.2% in 9M FY2023 to RM2.9 million compared with RM12.2 million in 9M FY2022.

Matt Chin, Executive Director of Minetech, said, “The Company is on the right growth path as we continue to see our losses narrow on significantly higher revenue contributions from the civil engineering and bituminous products divisions. We are also seeing a recovery in the services division and the food and beverage division is starting to contribute too.”

“Following our two-pronged strategic focus in 2020, the Company diversified into areas that can support financial performance while at the same time, transforming and rationalising the business. Our ventures now include financial technology and renewable energy, areas that have long-term growth and that can provide recurring income.”

“The Company is cautiously optimistic for the coming quarters given that the Malaysian construction sector expanded 8.8% in 2022, with all subsectors registering growth according to data from the Statistics Department. Notably, there was 20.8% growth in the civil engineering subsector in 4Q while the non-residential buildings subsector expanded 19.0% and special trade activities subsector grew 12.7%.”

Minetech Resources Bhd: 7219 [BURSA: MINE], https://minetech.com.my/

Minetech Awarded RM36.71 Million Mini-Hydro Project

Company to build 3MW mini-hydro power plant located at Sungai Pelagat, Besut, Terengganu

Minetech Resources Berhad, a civil engineering specialist and bituminous products manufacturer today announced that the Company’s wholly-owned subsidiary, Techmile Resources Sdn Bhd (TRSB), has accepted a letter of award (LOA) from Tesdec Hydropower Sdn Bhd for the engineering, procurement, construction and commissioning (EPCC) of a 3MW mini-hydro power plant at Sungai Pelagat, Besut, Terengganu valued at RM36.71 million.

The project, which is expected to commence in January 2023, followed by construction in 2025, is expected to be completed by May 2027, comes under the Sustainable Energy Development Authority’s (SEDA) feed-in-tariff (FiT) programme in which businesses or individuals that hold SEDA’s feed-in approval certificate can sell RE at the FiT rate to distribution licensees such as Tenaga Nasional Berhad.

TRSB provides EPCC as well as maintenance, repair and overhaul (MRO) services for the energy industry. Tesdec Hydropower is a sub-subsidiary of Tesdec Berhad through its subsidiary, Tesdec Services Sdn Bhd. Tesdec is wholly-owned by the Terengganu government while Tesdec Hydropower is principally involved in renewal energy (RE) activities, development and facilities in the state.

Dato’ (Dr). Ts. Awang Daud bin Awang Putera, Executive Chairman of Minetech said, “This project represents for us another step forward in our venture into RE that began in 2020 as part of an organisational transformation at Minetech, which includes diversification and rationalisation. Our move into RE enables us to partake in the development of a sustainable economy that is in line with initiatives in recent years to be greener and ensure social wellbeing.”

“The 3MW mini-hydro power plant project will allow us to also showcase what Minetech is capable of as we seek more opportunities in RE. As a registered solar photovoltaic investor with SEDA and the owner of a 9.99MW AC floating solar power plant located in Pantai Remis, Perak, we are also able to sell electricity to government agencies, businesses and individuals under SEDA’s Net Energy Metering Programme or NEM 3.0.”

YAB Dato’ Seri Dr. Ahmad Samsuri bin Mokhtar, Menteri Besar of Terengganu said, “The state government is committed to driving economic growth through such projects where positive spillover effects include lowering greenhouse gas emissions, mitigating the impact of human activities to the environment and safeguarding the wellbeing of communities through socio-economic progress”.

Chairman of Tesdec Hydropower, YB Ir. Saiful Azmi bin Suhaili said, “We are pleased to initiate this renewable energy project that will bring benefits to the people of Terengganu by providing a stable and clean source of electricity that can also support essential backup power should there be power outages or disruptions.”

The LOA signing ceremony was held at Primula Beach Hotel, Kuala Terengganu and were witnessed by Terengganu Menteri Besar, YAB Dato’ Seri Dr. Ahmad Samsuri bin Mokhtar and Executive Chairman of Minetech, Dato’ (Dr). Ts. Awang Daud bin Awang Putera. Executive Directors, Ts. Azlan Shah bin Zainal Arif and Mr Matt Chin signed on behalf of TRSB while Directors, Ir. Rosdan bin Ismail and Ts. Shahidan Izham bin Yeop Ibrahim, signed for Tesdec Hydropower.

Image Caption
From L-R:
1. Ts. Shahidan Izham bin Yeop Ibrahim, Director of Tesdec Hydropower Sdn Bhd
2. Ir. Rosdan bin Ismail, Executive Director of Tesdec Hydropower Sdn Bhd
3. YB Ir Saiful Azmi, Chairman of Tesdec Hydropower Sdn Bhd
4. YAB Dato’ Seri Dr Ahmad Samsuri bin Mokhtar, Menteri Besar of Terengganu
5. Dato’ (Dr). Ts. Awang Daud bin Awang Putera, Executive Chairman of Minetech Resources Bhd
6. Ts. Azlan Shah bin Zainal Arif, Executive Director of Minetech Resources Bhd
7. Matt Chin Leong Choy, Executive Director of Minetech Resources Bhd
https://www.acnnewswire.com/topimg/Low_Minetech02301111.jpg

From L-R (Standing):
1. YB Ir Saiful Azmi, Chairman of Tesdec Hydropower Sdn Bhd
2. YAB Dato’ Seri Dr Ahmad Samsuri bin Mokhtar, Menteri Besar of Terengganu
3. Dato’ (Dr). Ts. Awang Daud bin Awang Putera, Executive Chairman of Minetech Resources Bhd
From L-R (Seated):
1. Ts. Shahidan Izham bin Yeop Ibrahim, Director of Tesdec Hydropower Sdn Bhd
2. Ir. Rosdan bin Ismail, Executive Director of Tesdec Hydropower Sdn Bhd
3. Ts. Azlan Shah bin Zainal Arif, Executive Director of Minetech Resources Bhd
4. Matt Chin Leong Choy, Executive Director of Minetech Resources Bhd
https://www.acnnewswire.com/topimg/Low_Minetech02301112.jpg

Minetech Resources Berhad: 7219 [BURSA: MINE], https://minetech.com.my/

Minetech Records 32% Increase in Revenue for 2Q

Company’s loss before tax continues to narrow on higher revenue contribution from civil engineering and manufacturing divisions

Civil engineering specialist and bituminous products manufacturer Minetech Resources Berhad today reported that the Company recorded a 31.9% rise in revenue to RM26.9 million for the second quarter ended 30 September 2022 (2Q FY2023) compared with RM20.4 million in the corresponding quarter of the last financial year (2Q FY2022).

The Company registered a loss before tax (LBT) of RM1.5 million for the quarter under review compared with LBT of RM4.7 million in 2Q FY2022.

On a segmental basis, the civil engineering division recorded a 8.1% rise in revenue to RM16.1 million in 2Q FY2023 compared with RM14.9 million in 2Q FY2022. The manufacturing division, which produces bituminous products for pipe coating, waterproofing and sealing, posted a 166.7% increase in revenue to RM7.2 million compared with RM2.7 million in the same quarter of the previous financial year.

For the first-half of the financial year ended 30 September 2023 (1H FY2023), Minetech registered a 36.9% increase in revenue to RM50.9 million compared with RM37.2 million in 1H FY2022. The Company recorded LBT of RM3.1 million in the period under review compared with RM9.1 million in 1H FY2022.

Matt Chin, Executive Director of Minetech, said, “We continue to see our financial performance improve with narrower losses on higher revenue contribution from the civil engineering division’s Selinsing Gold Mine due to increase in work volume as well as from the Cheras-Kajang Highway, Wangsa Brezza Hill and GM Emerald Square.”

“We have seen a significant increase in revenue contribution from the manufacturing division mainly due to the rise in sales of coating enamel and blown asphalt products as a result of improved demand from both domestic and overseas markets.”

“While economic growth is on a stronger footing based on Malaysia’s third-quarter GDP figures, we note the increased risks of a slowdown in 2023 as global uncertainties stemming from the Russia-Ukraine conflict, China’s slowdown and inflationary pressure continue to weigh on sentiments. We continue to emphasise various cost-control measures and cash conservation and at the same time exploring opportunities that have seen us venturing into technology and innovation and penetrating into second-tier construction activities. These initiatives have helped us weather the storm and continue to create value for shareholders and other stakeholders.”

Minetech Resources Berhad: 7219 [BURSA: MINE], https://minetech.com.my/

Minetech’s Revenue for 1Q Rises 43.0% to RM24 Million

Company’s loss before tax narrows to RM1.66 million

Minetech Resources Berhad, a civil engineering specialist and bituminous products manufacturer, today announced that the Company registered a 43.2% rise in revenue for the first quarter ended 30 June 2022 (1Q FY2023) to RM24.05 million compared with RM16.80 million in the corresponding quarter of the last financial year (1Q FY2022).

For the quarter under review, the Company recorded a loss before tax (LBT) of RM1.66 million compared with LBT of RM4.35 million in 1Q FY2022.

On a segmental basis, Minetech’s civil engineering division posted revenue contribution of RM13.7 million for 1Q FY2023, a gain of 34.3% compared with RM10.2 million in 1Q FY2022. The manufacturing division, which produces bituminous products for pipe coating, waterproofing and sealing, recorded revenue contribution of RM5.85 million, a gain of 75.1% compared with RM3.34 million in 1Q FY2022.

Matt Chin, Executive Director of Minetech, said, “The civil engineering division’s contribution was supported by higher revenue from the Selinsing Gold Mine in the quarter under review compared to the corresponding quarter of the previous financial year as production regained traction while the manufacturing division saw a significant rise in revenue due to an increase in sales as a result of improved demand from water piping and road paving projects.”

“Recent news flow point to firmer domestic economic growth and the announcement of the MRT3 project together with the continuation of other large civil infrastructure projects is positive for the construction sector as there will be need for civil engineering services as well as bituminous products.”

“We will continue to be vigilant given the more challenging global economic outlook. We have rationalised our corporate structure and in recent years diversified into other businesses to enhance our financial performance while ensuring more stable recurring income. Our narrower losses for the quarter are a result of these measures.”

Minetech Resources Berhad: 7219 [BURSA: MINE], https://minetech.com.my/