Its project in Kota Serang in Indonesia will serve as a platform for the company to undertake more infra jobs.
While it is now venturing into water concession, it is worth noting that EPMB is also a contract manufacturer of water meters for Elster Group.
Its auto business is seeing falling sales.
As at Sept 30, 2011 it had cash of rm76.19 million against debt of rm200.35 million, translating into a net debt of rm124.16 million.
It may raise more funds in the form of bonds, rights issue or bank loans to finance the diversification plans.
Its net assets per share stood at rm1.68.
Proton and Perodua contributed some 80% of its revenue. Its dependence on these two automobile producers could pose a risk to its earnings should rival component manufacturers secure a slice of business from these two automotive players. It is worth nothing that DRBHicom (owns Proton) also manufactures automotive parts and components.
Nonetheless, the broadly positive review for Perodua’s replacement MyVi augurs well for EPMB. This is in tandem with the greater upstream localization policy by Perodua.
It also supplies components for Toyota vehicles in the Middle East.
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