Powerwell aims for RE diversification: deputy MD
19 Sep 2022
Powerwell Holdings Bhd has targeted at diversifying into renewable energy (RE) in the next one to two years, deputy managing director Datuk Adam Yee Hee Hoon said.
Yee said there were plenty of opportunities, especially with Malaysia being one of the most ESG (enviropnment, social and governance) driven countries in the world, allowing businesses like Powerwell to explore and embark on a few new and innovative areas.
“Southeast Asia is a key area when it comes to implementing renewable energy solutions since the demand for electricity in the region is expected to be double the global average in the coming years.
“In Malaysia alone, the installed capacity of renewable energy to be generated is projected to expand by over 30 per cent, from 36 gigawatts (GW) in 2020 to 47GW by 2030, with most of the growth coming from solar power installations,” he told the New Straits Times in an interview here recently.
Powerwell specialises in the design, manufacturing and trading of electricity distribution products with more than 30 years of experience in supplying its products for both local and international projects.
One of the significant projects that the company is involved in is the Mass Rapid Transit Sungai Buloh–Kajang Line.
Besides that, Yee said the reformation of the Malaysia Electricity Supply Industry (MESI) 2.0 programme was gradually driving the liberalisation of the power market, opening up opportunities for investment and competition.
Under the programme, Malaysia is expected to increase more than double its renewable capacity, from six GW to 14GW, rising from 18 per cent to 30 per cent of the generation mix.
Meanwhile, Yee said the company was actively bidding for projects.
“We usually bid on projects that are within RM 100 million. The projects that we will be focusing on are infrastructure and commercial buildings, as well as data centres, industrial building projects such as semiconductors, electronics, pharmaceuticals industries, among others,” he said.
Yee said the company’s orderbook replenishment stood at RM135 million as at Aug 31 this year.
“As comparison, the replenishment order book for FY21 and FY22 were RM96 million and RM125 million respectively,” he said.
Yee is optimistic about the company’s outlook after reporting positive earnings for two consecutive quarters.
Powerwell registered a net profit of RM1.21 million in the first quarter ended June 30, 2022 from the net loss of RM382,000 recorded in the same quarter last year.
Its revenue in the same quarter increased 59.8 per cent to RM23.81 million from RM14.89 million.
“The earnings visibility will ensure good earnings into the medium term at least. We have managed to improve our annual replenishment order book. This will support the sustainability of our group and bolster our earnings,’ Yee said.