West River plans to build new factory in Klang Valley, extend market presence to Johor and Penang
Managing director Lim Yong Lai said the group aims to channel RM10 million (35.84%) of its initial public offering (IPO) proceeds into land acquisition and the development of a new manufacturing facility to increase its production capacity.
'Our initial plan is to buy land, get the necessary approvals, and build the plant ourselves, a process we estimate will take around three years. However, we are also exploring the option of acquiring ready-built buildings which could shorten the timeline depending on market availability,' he said in a press conference following West River's listing on Bursa Malaysia's ACE Market today.
Lim said the proposed facility is expected to have around 35,000 sq ft of built-up area, significantly larger than its current site in Kajang. 'It will accommodate expanded production lines for the manufacturing of electrical panels and distribution boards, along with warehousing space.'
Apart from physical expansion, West River also plans to diversify geographically.
Currently, about 80% of the company's revenue comes from Klang Valley, but it is now eyeing project opportunities in Johor and Penang, especially within sectors such as hospitality and data centres.
'We have two projects pending on the northern side, one in Langkawi and another in the hotel sector. Meanwhile, we are also tendering for data centre projects in Johor, which is a hot sector right now. About 13% of our RM1 billion tender book consists of data centre projects,' Lim disclosed.
On financing strategy, he said West River is utilising RM5.6 million (20%) from the IPO to repay borrowings, aiming to reduce its gearing ratio from around 0.3 to between 0.1 and 0.2. 'This will provide more flexibility for future fundraising if needed.'
Commenting on Malacca Securities' projection of a 9.7% compound annual growth rate (CAGR) in core revenue over the next three years, Lim expressed confidence in the company's growth trajectory. 'While Malacca Securities projected a 9.7% CAGR in earnings over three years, our internal targets are more ambitious at 15%.'
West River opened higher at 39.5 sen on its debut, representing a 1.28% premium over its IPO price of 39 sen per share.
Based on West River's enlarged share capital of 357.7 million shares and the IPO price of 39 sen per share, its market capitalisation upon listing is about RM139.5 million.
Lim said the IPO performance met internal expectations. 'We are happy that investors still have confidence in us. The demand in the M&E sector remains strong.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
10 hours ago
- The Sun
Five-season padi planting in Kedah to boost rice self-sufficiency
JERLUN: The Five-Season Padi Cultivation Programme in Kedah's Muda Area is set to transform Malaysia's rice industry, reducing import dependency and strengthening self-sufficiency, Prime Minister Datuk Seri Anwar Ibrahim announced. Anwar emphasised the programme's significance, stating it aligns with the government's commitment to empowering local farmers and ensuring sustainable harvests. 'This initiative is very close to my heart. Therefore, rapid implementation and effective coordination are very important to increase the capacity of local rice farmers and ensure more sustainable harvests,' he said. The Prime Minister urged the Kedah state government and the Ministry of Agriculture and Food Security (KPKM) to collaborate closely for the programme's success. He reiterated the MADANI government's dedication to supporting farmers, calling them the backbone of the agro-food sector. During a working visit to the project site in Batu 7, Kampung Kemboja, Anwar reviewed infrastructure upgrades, including irrigation and drainage systems. The project, implemented through a Public Private Partnership, integrates modern technology to enhance productivity. The Muda Agricultural Development Board (MADA) stated that the initiative aims to reform the rice industry, increasing self-sufficiency and reducing climate-related challenges for farmers. The RM1 billion project includes irrigation upgrades and dam rehabilitation. - Bernama
New Straits Times
11 hours ago
- New Straits Times
PM wants priority on '5-season in two years' padi project in Kedah
JERLUN: Prime Minister Datuk Seri Anwar Ibrahim has urged the Agriculture and Food Security Ministry and the Kedah government to act swiftly to ensure the success of the "Five Cultivation Seasons in Two Years Padi Planting" Initiative. Anwar said the initiative in the Muda region was close to his heart and required prompt execution and effective coordination to ensure more sustainable yields. "I call on the state government and the Agriculture and Food Security Ministry to move quickly and work in a coordinated manner to realise this vital agenda," he said in a statement after a work visit to the infrastructure development site in Batu 7, Kampung Kemboja, here today. Present was Muda Agriculture Development Authority (Mada) chairman Datuk Dr Ismail Salleh, Menteri Besar Datuk Seri Muhammad Sanusi Md Nor and Home Minister Datuk Seri Saifuddin Nasution Ismail. Anwar expressed confidence that the government's efforts would catalyse a holistic reform of the country's padi and rice industry ecosystem, reduce dependence on imports and strengthen the national rice self-sufficiency level. "The Madani government listens to the voices of our farmers, understands their needs, and is committed to continuously empowering the sector through sustained support and various initiatives," he said. Anwar added this initiative reflects the government's compassion and determination to uplift farmers, who are the backbone of Malaysia's agri-food sector. In February, Anwar told Dewan Rakyat the government had approved RM1 billion for Mada to boost padi production in Kedah. According to Mada, the large-scale agricultural effort, implemented through a public-private partnership, integrates smart farming technologies to support higher productivity and long-term sustainability in the rice industry. "This initiative is a catalyst for reforming the national paddy and rice sector. By enabling five planting cycles within two years, we aim to boost self-sufficiency levels while enhancing the income of local farmers," it said in a statement. The development consisted of two main components. The first involves the construction and maintenance of 15 tertiary irrigation blocks. The second focuses on the rehabilitation of Pedu Dam under Phase One. The overall allocation for both components is estimated at RM1 billion.
The Star
12 hours ago
- The Star
UUE expects resilient year despite weaker 1Q
PETALING JAYA: UUE Holdings Bhd earnings for the first quarter ended May 31, 2025 fell to RM1.69mil from RM5.56mil recorded in the same period a year earlier due to weaker topline. In a filing with Bursa Malaysia, the company noted revenue for the quarter fell to RM32.4mil from RM38.96mil in the previous corresponding period due to weaker contributions from its core business segments, namely underground utilities engineering solutions and the manufacturing and trading of high-density polyethylene (HDPE) pipes. Revenue from the underground utilities engineering segment declined to RM28.11mil from RM33.59mil, while the HDPE manufacturing and trading division posted RM4.3mil in revenue, compared with RM5.4mil a year ago. 'The lower revenue was primarily attributable to the slowdown of Singapore projects during the current quarter due to transition to new projects,' the group said. However, UUE noted that new projects in Singapore had commenced and are expected to contribute to revenue in the coming quarters. Looking ahead, UUE remains cautiously optimistic about its performance amid concerns over external factors including the United States' recent tariff hikes on goods from the rest of the world. 'Despite a weaker performance in the current quarter compared to the corresponding quarter, the group expects to maintain resilient performance for the rest of the financial year,' it said. UUE added it would continue to adopt prudent operational and financial strategies to ensure long-term resilience while remaining vigilant to potential market challenges. Basic earnings per share for the quarter amounted to 0.3 sen. No dividend was declared for the quarter.
