Kelington

An engineering firm in the ICT sector is expecting to clinch more contracts in 2014 that will boost its earnings.

The firm remains optimistic of securing Taiwan Biodiesel’s RM35 million contract by Jan 2014. Total contracts that could be secured in 2014 is RM200 million, including the current jobs. The values of these contracts are 37% higher than the expected RM146 million secured in 2013.

The company will continue to solidify its position as the leading Malaysian ultra-high purity engineering system solution provider.

It has started ultra-high purity skills to extend its reach into the healthcare, bioscience, and pharmaceutical industries as this will dampen the effects of the semiconductor industry’s downturn.

It had secured a US$46 million (RM151 million) healthcare-related project from Kang Hui Maternity Centre in Shanghai is a case in point.

Formed in 2000, Kelington is a leading ultrahigh purity gas and chemical delivery solutions provider with operations in Malaysia, China, Taiwan and Singapore.

It has also diversified into the areas of system design and modelling, fabrication and installation, quality testing and certification, control and instrumentation, and maintenance for
various foundries.

The majority of Kelington’s capital expenditure (capex) is spent on human capital as it is involved in the engineering services. Therefore, its capex spending is not huge compared with the manufacturing-based industry.

Kelington has a dividend policy of a minimum 25% of net profit. As at September 2013, it has a net cash position of RM23 million with an order book of RM44.6 million.