Pansar eyes sustained growth across all sectors

KUCHING: Pansar Bhd is focusing on the continued growth of its various businesses which produced commendable financial results in financial year ended March 31, 2024 (FY2024), says its chairman Datuk James Tai Cheong.

He said the group reported a 25.6 per cent increase in revenue to RM1.04 billion in FY2024 as compared to that of FY2023, adding that its performance had rebounded beyond pre-COVID levels.

The expanded revenue drove the group’s gross profit higher by RM20.6 million (23.1%) to RM109.5 million from FY2023.

“During this period, all our business units produced commendable results.

Particularly, our marine and industrial division experienced a 65.8 per cent revenue increase due to heightened demand for our power system for the shipbuilding industry.

“Our construction & infrastructure division also reported a 40.1 per cent increase in revenue as a result of the normalisation of works post-COVID and newly awarded projects.

“Synergistically, our building & construction materials division also experienced slightly over 30 per cent growth in revenue,” added Tai in the company’s 2024 annual report.

Looking forward, he said Malaysia’s pro foreign direct investment focus is beginning to bear fruit for the economy and for the Pansar group.

Tai said the Sarawak government’s on-going efforts to improve land connectivity and upgrade rural infrastructure will continue to create business opportunities.

“We will continue to focus on the growth of each of our business division and the exciting challenges each portrays.

“With the continuous stability of the oil & gas sector and elevated mineral prices, the shipbuilding sector should continue to enjoy good growth, and likewise, our power system supply to this sector.

With the industry moving towards more environmentally friendly fuel, we are promoting our dual-fuel diesel & gas engines for new builds as well as repowering.

“The industrial products and services section is also expected to experience increased demand due to our marketing efforts with sustained economic growth and industrial expansion.

In addition, we are excited that Mercury, the renowned leader in outboard marine engines, has appointed us as the distributor for Malaysia & Brunei,” said Tai.

For the group’s building and construction materials business unit, he said Pansar has also synergistically introduced geotextiles and other complimentary range of products to expand its product offerings, in additional to the mainstay of basic construction materials.

“This division continues to be our second largest revenue contributor, accounting for 20.2 per cent of the group revenue in FY2024.

“Looking ahead, the construction and infrastructure business sentiments are expected to improve, bolstered by on-gong construction and infrastructure activities in Sarawak.”

Tai said the group’s mechanical & electrical unit continues to build its capability, and has secured significant number of contracts.

The unit has introduced gas-powered air conditioning systems as an environmentally friendly option.

“The division reported significantly higher operating profit largely due to improved margins and successful (payment) collection efforts.

We are constantly building up and replenishing our order book, which is at RM121.8 million with deliveries spanning the next 36 months.

“To increase sustainable earnings, we have started a facilities management team.

The first contract with Borneo Culture Museum was obtained in May 2024, and we are targeting more government and private facilities.”

Tai said the group’s civil engineering unit continues to bid for the many opportunities that the Sarawak government’s PCSD (Post-COVID Development Strategy) presents.

In addition to winning the tender for the Sarawak Infectious Disease Centre (project) and Sibu Water Board’s water treatment plant expansion, we anticipate tendering for more infrastructure works that will soon be coming on stream.

The current net order book is very robust at RM1.3 billion with projects extending until 2027,” he added.

He said Pansar’s commitment to sustainability, fostered through teamwork and unit, will remain steadfast.

“We will continue to integrate sustainable practices and advanced technologies into our operations, ensuring that our growth is both profitable and responsible.

“By nurturing a culture where diversity, inclusion, and innovation thrive, aligned with global sustainability goals, we aim to create long-term value for our shareholders and stakeholders alike,” said Tai.