KUALA LUMPUR (Aug 12): Pioneer Heat Holdings Bhd said it does not expect any decline in demand or projects from the ongoing Middle East conflict, as demand for its services in the oil and gas sector remains steady.
“So far I don’t see any declines in the demand or projects from the oil and gas industry clients. Even if there is a slowdown in the oil and gas sector, our company is a mechanical engineering player. We are not only focused on oil and gas, but also petrochemicals, utilities, power plants, and manufacturing. For us, the demand is still there,” the company’s CEO and executive director Wong Wei Ken told reporters during the press conference following the prospectus launching ceremony on Wednesday.
Pioneer Heat provides mechanical and civil engineering services for industrial and related facilities.
Its services include piping, heat treatment, flange management and non-destructive testing, mainly serving the oil and gas, petrochemical, utilities and manufacturing sectors.
For the financial year ended March 31, 2026 (FY2026), the group reported a 59.22% increase in net profit to RM8.21 million, compared with RM5.16 million a year earlier. This was supported by a 127.27% surge in revenue to RM97.66 million from RM42.96 million previously.
The group has two revenue divisions in which mechanical engineering services contributed 75.51% out of total revenue, and the civil engineering project division made up the remaining 24.45%.
Wei Ken said Pioneer Heat has also been approved as a vendor for Petroleum Sarawak Bhd (Petros), supporting its expansion in Sarawak.
It had an order book of RM50.43 million as at end-July, although Wong did not disclose the potential contract value from Petros.
The company aims to raise RM26.02 million from the listing on the ACE Market.
Of the IPO proceeds, RM21.68 million will go to Pioneer Heat, while RM4.34 million will go to its three promoter brothers — Wong Hing Chong, Wong Hing Kok and Wong Heng Chong.
The company will use the funds for a new headquarters in Sendayan (RM4 million), a Sarawak office and workshop (RM2.07 million), and machinery and equipment (RM4.01 million). The remaining RM11.6 million will be used for working capital and listing expenses.
When asked, financial controller Tee Shi Ying said the company chose to use the IPO funds for expansion rather than repaying bank borrowings, as its borrowings remain at a healthy level.
Pioneer Heat’s net gearing improved to 0.72 times in FY2026, from 0.76 times a year earlier.