Symbolic procurement: Md. Yunos handing over a gadget to Walter.
MALACCA: Malacca-based technology company Quantum Electro Opto Systems Sdn Bhd (QEOS) is acquiring a 60% interest in MEPCON Sdn Bhd, a hybrid system integrator and manufacturer for the mechanical and electrical industry.
QEOS group chief executive officer Dr Gabriel Walter said MEPCON was among the early Malaysian pioneers and promoters of commercial solar systems, megapixel digital surveillance system and LED (light-emitting diode) illumination systems. The company has more than RM100mil in confirmed order book between 2015 and 2017.
“MEPCON also holds several key licenses and technology for power distribution. Its successful projects include the recently launched IOI City Mall in Putrajaya and the Skyve Residence,” he said after a signing ceremony between the two parties recently, which was witnessed by state Education, Higher Learning, Science and Technology, Green Technology and Innovation committee, Datuk Wira Md Yunos Husin.
Walter said the collaboration between both teams has already resulted in the proprietary Quantum Direct Drive System, which includes QEOS LED lighting systems, QEOS power systems, QEOS network, QEOS surveillance systems and QEOS Internet of Things systems, that provides up to 30% cost savings over other compatible systems.
“QEOS will have immediate large scale market validation for our technology, which will provide performance and cost advantages over similar systems. For example, our advanced LED lighting system will provide up to 30% cost advantage over others.
“Over the period of 2015 to 2019, the company is projected to generate more than RM500mil in revenue,” he added.
He also noted that MEPCON’s experiences in the industry, from sales to financing and large scale project implementation, brings tremendous value to a high technology company such as QEOS, which is seeking the right market direction and focus.
“As technology matures, margins will shrink. Our industry requires us to continually innovate by producing more of the systems ourselves.
“We are already seeing immediate significant impact to our gross margin and net profit since MEPCON and QEOS started collaborating with a projected net profit of at least RM5mil for this year,” he said.
Walter noted that the company’s drive in technology helps it remain competive in the business. And although MEPCON is already a profitable and sustainable business, Walter believed the company has much greater profit growth potential through its partnership with QEOS.