KUALA LUMPUR (Aug 29): Geotechnical specialist Fibromat (M) Bhd (KL:FIBRO) said on Friday it is eyeing up to RM2 billion worth of upcoming projects as it scales up its role from a niche subcontractor into a full-fledged design-and-build contractor.
The company has been pre-qualified for selective tenders covering major flood mitigation and land reclamation works, according to managing director and chief executive officer Danny Ng Kian Boon. These projects include Projek Lembangan Sungai Bersepadu (PLSB) Golok Phase 2, PLSB Semantan Phase 2, and flood mitigation schemes in Sungai Lipis, Sungai Tanum, and Sungai Merapoh.
“Based on our capacity — we have all the necessary plant and machinery, and design capabilities — I would say we are better positioned now. We are contractors that have the three basic ingredients: technical expertise, financial capacity, and design solutions,” Ng said at Fibromat’s results briefing.
“Gone are the days when you could bid first and then look for partners or financing later. Now the government wants to see that you already have the machinery, the people, the financial backing, and the design capabilities before you are even invited to tender,” he said.
If successful, the new contracts would add to Fibromat’s existing unbilled contract of RM367.83 million and unbilled sales orders of RM19.88 million. Still, Ng cautioned that earnings contribution will not be immediate.
“From tender to award to project completion, the cycle is typically three years,” he said.
Some of its existing ongoing projects include Central Spine Road roadworks and infrastructure works of about RM280 million, Pan Borneo Highway Sabah slope protection works of about RM22 million, and Klang Westport ground improvement works of about RM27 million.
For the first half of the financial period ended June 30, 2025 (1HFY2025), Fibromat posted a net profit of RM5.7 million on revenue of RM31.4 million, according to the group's filing with Bursa Malaysia on Thursday. There’s no direct comparison available, as this is only Fibromat’s second financial report since moving from the LEAP Market to the ACE Market on May 8.
Chief financial officer Nadiah Firdaus said the company’s revenue is well-balanced: trading contributed 43%, design and installation 42%, and manufacturing 15%.
The company maintains a healthy balance sheet with a gearing ratio of 0.2 times and a current ratio of 2.8 times, providing headroom for additional financing if larger projects are secured.
Since its ACE Market debut, Fibromat’s share price has climbed more than 30%. At the midday break on Friday, Fibromat shares inched down one sen or 1.35% to 73 sen, valuing the company at RM181.27 million.