It has a three year contract to provide bus services for the NS Programme. The RM164.95 million contract was for a three year duration up to Dec 2017. The deferment of the 2015 NS programme means Gunung will have to forgo the income from two batches for 2015.
Gunung is expecting its NS transport charter contract to rake in rm14 million to rm16 million per year once it is back on track.
It has posted stable earnings in the last few years relying on government contracts. However it has set in motion a plan to diversify into hydropower projects since 2013.
It had initiated a JV with Perak hydro Renewable Energy Corp Sdn Bhd for two mini hydro projects of 10MW each. PHREC is the master and overall developer of mini hydro plants in Perak.
Under the WRA with the state government of Perak, there are an additional 10 viable Greenfield sites that have been pre identified with an installed capacity of about 50 MW. These sites will be developed under Gunung Hydropower Sdn Bhd n stages.
Once all the sites have been commissioned, Gunung expects to have a total installed capacity of 245MW.
Every 10MW installed capacity that comes onstream will generate an average rm15 million to rm17 million annual revenue for 21 years from the sales of energy to Tenaga.
Contributions commencement to Gunug’s earnings will start in FY2017/FY2018 and then grew over the remaining 19 to 20 years tenure of the renewable energy purchase agreements.
Gunung holds a 60% in the JV.
The substantial shareholders of Gunung are Datuk Syed Abu Hussin who is the company’s CEO with 16.33% stake. Erayear Equity Sdn Bhd holds a 11.79% and Ooi Hock Lai has a 8.4%.
Its net assets stood at rm37.73 million as at Sept 2014 or rm0.725 per share.
Cash and cash equivalents came to rm18.88 million and short term borrowings of rm16.7 million.
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