KUALA LUMPUR (Jan 8): Swift Energy Technology Bhd (KL:SET), which made its debut on the ACE Market on Wednesday, is expecting mid-teen earnings growth in the current financial year, leveraging new opportunities in the renewable energy (RE) industry within the oil and gas (O&G) sector.
The company, which supplies automation and power systems to RE and O&G industries, has set its sights on capturing more projects in the foreign markets across Asia, mainly Indonesia, Singapore and China, said Swift Energy executive director and chief executive officer Tan Bin Chee after the listing ceremony.
“We endeavour to sustain our growth. At the moment, with the order book in hand, it looks promising. In fact, we are working very hard to capture more projects,” Tan said.
As of December 2024, Swift Energy's tender book stood at about RM80 million. The company’s past tender win success rate is between 20% to 30% annually, according to Tan.
The company’s order book is currently stands at RM71 million.
For the financial year ended Sept 30, 2024 (FY2024), the company posted a net profit of RM16.85 million, up 41% from RM11.94 million in FY2023. Revenue grew 19.8% to RM110.75 million from RM92.43 million the year before.
Its net profit was at RM7.9 million in FY2022 on annual revenue of RM81.84 million.
Swift Energy's revenue was mainly derived from the process control systems and EX solar PV systems, which accounted for around 52.6% of the group’s total revenue as of FY2023.
Swift Energy started its maiden trading day at 36 sen, representing a 29% jump against its initial public offering (IPO) price of 28 sen. It closed at 39.5 sen after hitting an intra-day high of 40 sen, up 41% against the offer price. A total of 332.8 million shares changed hands, making it the most actively traded counter.
The company does not have a dividend policy. However, it declared dividends of RM11 million in September last year prior to its listing.
Headquartered in Shah Alam, the industrial automation and power systems manufacturer and distributor also operates in Thailand, Singapore and China, serving about 550 customers across 29 geographical markets, covering the Asia-Pacific, Middle East, Africa and Europe.
Swift Energy said it is also looking into cross-selling opportunities across the regional markets.
Tan said the company aims to grow its operations to cover more segments within the O&G industry.
Despite the possibility of capital expenditure reduction by Petroliam Nasional Bhd (Petronas) this year, Swift Energy said that it remains optimistic in its business prospects, as the company focuses on greener energy solutions by deploying solar photovoltaics (PV) for O&G companies.
“Our business is a bit unique, we are not so much serving crude oil (fossil fuel) business. We are more concentrated on greener energy which is natural gas,” Tan said.
“We are negotiating several new projects this month, particularly for our EX (explosive-proof) solar PV systems. Winning these contracts will significantly contribute to our growth,” he added.