WATER engineering specialist Salcon Engineering Bhd, a 51% subsidiary of Kumpulan Emas Bhd, is targeting to double its pre-tax profit and turnover to RM36.4mil and RM337mil respectively, for the financial year ending July 31.
Kumpulan Emas managing director Dr Patrick Teoh said: We are confident of achieving this target based on the strong book orders worth RM500mil for both engineering and maintenance works.
Of these, over 80% are in Malaysia, and the remaining 20% elsewhere in the regional, mainly in Thailand, Vietnam and India.
Salcon, en route to a KLSE main board listing in the second quarter of this year, registered a pre-tax profit of RM18mil on the back of a RM153mil turnover for the financial year ended July 31, 2002.
In its 28 years, Salcon has completed more than 450 water-related and 60 palm oil mill projects in Malaysia and Asean.
We plan to actively bid for more water-related jobs locally as well as regionally (like in China, Indo-China and the Middle East), he said at a press conference in Subang Jaya yesterday to announce the Securities Commissions (SC) approval for Salcons listing.
Teoh also expects more palm oil mills to be set up this year, particularly in Sabah and Sarawak, in view of the current firm price of crude palm oil.
The proposed listing of Salcon was achieved through a rescue exercise of Seng Hup Corp Bhd, a PN4 company under Pengurusan Danaharta Bhd, in September last year.
Upon completion of the reverse takeover, Seng Hups listing status would be transferred to Salcon.
According to Teoh, Kumpulan Emas had been looking to list Salcon on the KLSE second board in 1997, but the plan was scuttled by the Asian financial crisis.
The reverse-takeover and rescue exercise is our first real attempt to list Salcon. With improved sentiments this year, we are confident that Salcons listing will be a huge success, he said.
Kumplan Emas would also seek shareholders approval for the Salcon listing.
Teoh said: We are giving our shareholders an early new year present as the listing of Salcon will enable Kumpulan Emas to unlock the value of its investment in Salcon, converting it into marketable securities.
Kumpulan Emas has a diversified core business in water engineering, education, property, plantation and oil milling.
Teoh added that the listing would also support the regional business growth of Salcon, giving it direct access to the capital market for funds for its future expansion.
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