Pestech units in Cambodia and Malaysia show better performance

Pestech International Bhd is expected to perform better in the fiscal year ending June 30, 2022 (FY22) compared to FY21.

In Cambodia, Pestech owns a 70% stake in ODM Power Co Ltd, which manages a concession asset, and a Stung Tatay hydropower plant – the Phnom Penh transmission network project.

This is because the group’s key projects in Cambodia and the Klang Valley Rapid Transit Line 2 (MRT 2) are moving into later stages, which could result in higher overall margins, according to Kenanga Research.

Pestech (Cambodia) Plc says it is interested in attracting investment from sustainable energy companies or even buying out companies in areas such as hydrogen and battery storage as the country moves away from fossil fuels.

As Cambodia returns to business under the ‘new normal’, the local branch of Malaysian company Pestech International Berhad says demand for electricity will rise and it is in a strong position to capitalize on the push in favor of cleaner energy.

“We understand EDC [Electricite du Cambodge] have quite a few projects, especially towards a storage system on the power grid. EDC is examining it very carefully in order to continue its sustainable development agenda, moving towards renewable energy systems and battery storage, using solar energy as a combination. We will therefore prepare to bid for this kind of job, ”Pestech (Cambodia) President Paul Lim said at the Pestech Cambodia general assembly on December 10.

The research unit said it continues to appreciate Pestech as a niche utility infrastructure game that could potentially benefit from the revival of megaprojects nationwide and the rapidly growing energy infrastructure development market. in Indochina.

Kenanga Research maintained its “outperform” call on Pestech with an unchanged price target of RM 1.11.