Speaking to StarBizWeek, Phum says the group’s projects a double-digit internal rate of return (IRR) for its RE business. “I must emphasise that our focus is beyond the IRR, but the fact that the group can establish a new and recurring income stream that bolsters our long-term earnings, ” he says.
LISTED earthworks player, Advancecon Holdings Bhd
, expects to make about 25% of its net profit from its new renewable energy (RE) business within the next three to five years, according to co-founder and group chief executive officer Datuk Phum Ang Kia.
The group, which has been serving property developers such as SP Setia, EcoWorld, Sime Darby Properties and the Tropicana group, recently announced its diversification into the RE segment, particularly in investing and maintaining solar photovoltaic systems.
Advancecon’s decision to venture into RE is understandable, considering that more than 91% of its revenue over the years have been coming solely from its earthworks and civil engineering services segment.
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