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PESTECH (5219) : PESTECH INTERNATIONAL BERHAD
Rose
Member Star
Posts: 2
Joined: Mar 2013
Male, MYS
01 Mar 2013, 10:51 AMPost #1
NTA is 81.34 sen not RM81.34!!!
Joanna
Member Star
Posts: 14
Joined: Mar 2017
Male, MYS
25 Sep 2018, 09:20 PMPost #2

yeahnta is so low and no div for 2 years. will the contract help it to rise?

nwl6803
Member Star
Posts: 4
Joined: Sep 2018
Male, MYS
26 Sep 2018, 12:12 AMPost #3

Has been going sideways for a while, a contract worth half of their annual revenue is good enough to push price up tomorrow.

Sam Goh F3
Member Star
Posts: 2
Joined: Dec 2022
Male, MYS
04 Feb 2023, 11:06 AMPost #4

NTA is 60.33sen. Price at 25.4 sen. Business is on going...There is corruption cases to the directors.How far the share price can dropped?Bottom fishing!!!!

shareking1111
Member Star
Posts: 2
Joined: Feb 2023
Male, MYS
21 Feb 2023, 08:24 PMPost #5

https://www.theedgemarkets.com/node/654996

Pestech: Priority is to regain confidence of all stakeholders

Cheryl Poo and M Shanmugam

/

The Edge Malaysia


February 21, 2023 14:00 pm +08

 

This article first appeared in The Edge Malaysia Weekly, on February 13, 2023 - February 19, 2023.

Pestech: Priority is to regain confidence of all stakeholders

-A+A

JUST as Pestech International Bhd was about to embark on a major milestone in its railway venture, the company was dealt a severe setback.

Its key executives were charged by the Malaysian Anti-Corruption Commission (MACC) for alleged wrongdoing on Jan 27. The news dampened shareholder sentiment and forced the company to abort a 10% placement exercise to raise funds.

The placement, which was first proposed on Jan 26, 2022, and to be done in tranches, was supposed to raise between RM60 million and RM70 million to fund the company’s existing projects. The first tranche was completed in March last year, with Pestech raising RM20.3 million after placing out 36.8 million shares, representing 3.87% of the company.

Branded

The shares were issued at 55 sen each. After news of the MACC charges broke out, shares in Pestech fell. At the time of writing, it had dipped to about 25 sen. The company called off the placement exercise on Feb 10.

A Pestech spokesperson tells The Edge that the company has ruled out a rights issue. “The current sentiments are not right for a placement exercise,” says the spokesperson.

Instead, the company is looking at using internal funds, including proceeds from the sale of one of its assets in Cambodia, to tide it over during this difficult time. Towards this end, Pestech is expecting to complete the sale for US$118 million (RM510 million) this month.

“The net proceeds due to the company after the disposal should be about RM200 million. That amount should be able to tide us over for now. The company’s main objective now is to regain the confidence of investors and implement the jobs at hand,” the spokesperson says.

The spokesperson explains that the board has decided it is business as usual for Pestech, and all three executives are still very much involved in managing the operations of the company.

“After hearing the directors out comprehensively, the board decided unanimously that it was not necessary to take any action against them until the court decides otherwise.

“The company is still tendering for projects. We have a RM1.4 billion order book of ongoing projects and we will tender in Papua New Guinea, Iraq, the Philippines and Singapore. In Singapore, our bids are for rail-related works while two are for the transmission of power lines,” says the spokesperson.


On Jan 27, Pestech chairman Lim Ah Hock and managing director-cum-group CEO Paul Lim Pay Chuan were charged with abetment in allegedly misappropriating the assets of a subsidiary, Pestech Technology Sdn Bhd, amounting to RM10.6 million. Ah Hock faces one charge while Paul faces three.

The principal charge is against Pestech Technology CEO G Paismanathan, who was charged on Nov 9, 2022, with four counts of misappropriating company assets worth RM10.6 million.

Pestech Technology allegedly made the payments for works not rendered by a consulting company, and Ah Hock and Pay Chuan have been accused of abetting in these payments. Paismanathan is Pestech’s key person for its railway-related jobs. All three have claimed trial.

Pestech started as an engineering company specialising in power and transmission lines in Malaysia and was listed on the Main Market of Bursa Malaysia in 2012. Gradually, it built up a presence in the region, particularly in Cambodia, where it has concessions for transmission lines and renewable energy.

Domestically, Pestech has, in the last few years, made inroads into electrification works in the railway infrastructure space and won several notable projects.

At the moment, the group’s major projects are the Rapid Transit System Link (RTS Link) between Malaysia and Singapore; the Southern Double Track works between Gemas and Johor Baru; and the automated people mover aerotrain project in Kuala Lumpur International Airport.

Pestech is the electrification contractor for the Mass Rapid Transit 2 (MRT2) project, which is due to be completed soon.

Among all its projects, the RM740 million aerotrain works was a major breakthrough for the company. The mandate was to undertake the entire engineering, procurement, construction and commissioning (EPCC) works.

Previously, such jobs were mainly given to foreign companies that had the technology. Pestech’s mandate includes the maintenance of the systems. It is to be paid by Malaysian Airport Holdings Bhd (MAHB) on a deferred basis.

Business as usual

Pestech has been reaching out to its clients to explain the charges its key executives face as part of measures to instil confidence in the company, says the spokesperson.

“The company has built a track record in electrification works, be it for transmission lines or railway works.

“The company has been successful in completing its transmission lines and substation projects, giving it the experience to work overseas. It has done it in the Philippines and Cambodia, and will continue to tender for jobs,” the spokesperson says.

“On the railway electrification works, Pestech has established a track record. We have done urban railway electrification works such as the MRT2. We plan to seek other jobs locally and in the region. The priority is to regain the confidence.”

Pestech’s investments in Cambodia are worth more than RM800 million. Apart from three overhead rail concessions, including the one that is being disposed of, Pestech has a 20mw large-scale solar farm.

“There is a lot of interest in solar farms and renewable energy now,” the spokesperson says.

Pestech’s unit has secured a contract worth RM156.91 million with the National Grid Corp of the Philippines to upgrade the South Luzon substations. The job comprises an offshore portion worth US$23.46 million (RM98.18 million), and an onshore portion valued at 710.76 million pesos (RM58.72 million).

“The company also has renewable energy opportunities coming up in Papua New Guinea, for which it will be tendering,” the spokesperson says.

Pestech has been profitable over the years, even during the pandemic. Its bottom line fell for the financial year ended June 30, 2022, due to a slower pace of execution for its projects.

In the latest quarter, it recorded a loss of RM101.5 million on a turnover of RM130.2 million. The loss was due to a one-off fair value adjustment of RM109 million for assets held for sale. Excluding the write-off, Pestech’s net profit would be RM8 million.

As at Sept 31, 2022, Pestech’s cash and short-term deposits stood at RM165 million, while long- and short-term loans amounted to RM1.4 billion. The group’s net gearing, if its RM100 million perpetual sukuk are considered as debt, stood at 1.74 times. Excluding the perpetual sukuk from total debt, its net gearing improved to 1.42 times.

The bulk of its borrowings is mainly term loans that are tied to projects, while its cash is mainly tied to the loans extended to the company.

Shares in Pestech, which stood at a record high of RM1.77 in January 2018, plunged to 24 sen last Thursday, down 86.4% over the last 16 months. The company was valued at RM228.3 million.

Regaining investor confidence may be a long haul for the company. Its execution of key projects in the country such as the KLIA aerotrain and the RTS Link project in Johor will certainly strengthen its case with all stakeholders, including investors.

shareking1111
Member Star
Posts: 2
Joined: Feb 2023
Male, MYS
21 Feb 2023, 08:31 PMPost #6

https://focusmalaysia.my/business-as-usual-at-pestech-prospects-remain-sound-despite-court-case/

Business as usual at Pestech; prospects remain sound despite court case

THE business prospects of Pestech International Bhd, an integrated electrical power technology firm, remain intact despite its share price having taken a tumble since late last month after two of its top executives were charged for allegedly abetting the misappropriation of fund related to a wholly owned subsidiary.

 

A spokesman said Pestech has at least RM1.4 bil in order book with plans afoot for the company to tender for projects in several regional countries including Singapore, the Philippines and Papua New Guinea.

“The company has built its track record as a rail electrification company by undertaking transmission lines and railway works,” the spokesman told FocusM on condition of anonymity given its pending court case.

 

“Locally, its projects include the Rapid Transit System Link (Malaysia-Singapore), Southern Double Track (Gemas- Johor Bahru) and the Aerotrain project at the KLIA (Kuala Lumpur International Airport).

Although both its executive chairman Lim Ah Hock and managing director-cum-group CEO Lim Pay Chuan were charged at Shah Alam Sessions Court on Jan 27, the duo have denied all allegations and claimed trial in respect of the charges against them.

As per Pestech’s Bursa Malaysia filing, both Ah Hock and Pay Chuan were accused of abetting the misappropriation of Pestech Technology Sdn Bhd’s assets with regard to four payments amounting to RM10.6 mil.

The principal charge was against Pestech Technology’s CEO G. Paismanathan who was charged in November 2022 with four counts of misappropriating company assets worth RM10.6 mil.

“Both Ah Hock and Pay Chuan have strenuously denied and claimed trial in respect of all the charges and allegations against them. They will defend and clear themselves of the said charges and allegations in court as both individuals have represented that neither of them had benefitted from the payments,” Pestech’s stock exchange filing pointed out.

“(Moreover), both directors have provided comprehensive explanations to the company’s board which after due consideration, decided and concurred unanimously that it is not necessary to take any action against them until the court decides otherwise.”

Notwithstanding the company’s sound prospects, Pestech has decided to put on hold its private placement exercise “due to conditions being not conducive”.

“Instead, the company will be using internal funds, boosted by the proceeds from the sale of one of its assets in Cambodia for net proceeds of about RM200 mil,” explained its spokesman.

“Pestech’s main priority at the moment is to regain investor confidence and fulfil its project pipeline. It will continue to bid for projects and expand its project portfolio internationally.”

At 3.42pm, Pestech was down 1 sen or 13.77% to 25.5 sen with 3.45 million shares traded which thus valued the company at RM253 mil. – Feb 21, 2023

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yeah doh drool lol mad notworthy question rant rolleyes sad shutup shy smile star sweat thumbup wub cry

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