Mestron aims to win another RM20 million worth of orders over the next six months amid strong demand for its telco segment, supported by the rollout of the 5G network nationwide.
KUALA LUMPUR: Mestron Holdings Bhd (Mestron) and its subsidiaries made a solid start for the year as the group generated more orders than expected during the first five months of the year (5M22”) despite the Covid-19 disruption in the first quarter of this year (1Q22).
In a statement, it explained that Mestron recorded a total order book of RM17.5 million during the 5M22 as the rollout of telecommunication (telco) infrastructure gathers speed, driven by the Jalinan Digital Negara (Jendela) campaign. These order books came from various customers, namely Smartgen Technology Sdn Bhd, Hytro Vista Sdn Bhd and OCK Setia Engineering Sdn Bhd.
It aims to win another RM20 million worth of orders over the next six months amid strong demand for its telco segment, supported by the rollout of the 5G network nationwide.
Por Teong En
Mestron’s managing director Por Teong Eng said: “It has been a great start for the year 2022 as we move beyond the Covid-19 pandemic.
“We are excited about the group’s prospects as we have seen a sharp improvement in our order books during the first five months of this year.
“The pickup of these orders are supported by the faster rollout of the telco projects following the reopening of the economy.”
This is in line with the accelerated progress in the implementation of the national digital infrastructure plan, Jendela.
In a statement released by Digital Nasional Bhd (DNB) in the 1Q22, various federal, state and local authorities and government agencies have helped to expedite the rollout of 5G network in Malaysia.
In fact, DNB’s chief technology officer, Ken Tan, said in a statement that these initiatives helped DNB to stay on track for its 5G coverage target of 37.9 per cent of populated areas by the end of this year.
The surge in momentum for the rollout of 5G will benefit Mestron, which generated its revenue mainly from the sales of its standard poles and specialty poles within the telco segment. The projects that Mestron was awarded during the 5M22 was under the Jendela Phase 1 Project and are expected to be delivered by August 2022.
“It has been a busy year for us as we have won three contracts from three different telco infrastructure players. These are just the ones that we have contracted in 2022, and the Group is looking forward to tapping on the growing demand for its specialty poles within the telco segment amidst the rollout of 5G network nationwide,” Por said.
According to Por, Mestron targets to win another RM20 million worth of contracts over the next six months from the telco segment. The strong demand will be supported by the rollout of the 5G network in Malaysia.
Por expected the group’s strong order books to sustain Mestron’s revenue growth for the rest of FY22.
Recall that the group’s revenue for the first quarter of FY22 surged by 84.1 per cent year-on-year to RM21.4 million, mainly due to an increase in sales demand for its standard poles and specialty poles. The increase in sales for its specialty poles is mainly driven by Mestron’s telco segment.