GEORGE TOWN: Mesdaq-listed Daya Materials Bhd (DMB), which has applied for a transfer to the main board, has RM85mil worth of contracts in hand that will last until year-end, said executive vice-chairman Datuk Mazlin Md Junid.

Fresh contracts total about RM35mil and were secured via wholly-owned subsidiaries Proffscorp Sdn Bhd, Seca Dyme Sdn Bhd and CMT (Penang) Sdn Bhd, he told StarBiz.

“Through CMT, we are undertaking a RM15mil job to construct a medical plant in Negri Sembilan, and to provide structural maintenance services for a medical manufacturing plant in Penang.

“We are providing through Seca Dyme various catalysts used for the production of methanol for a petrol-chemical plant in Labuan.

“This delivery generates about RM13mil for the group, cementing Daya Materials’ position as one of the largest downstream chemical suppliers to the oil and gas sector in the country.

“And finally through Proffscorp, we are providing heavy lift services to service a major petrol chemical plant in Kertih, Terengganu, which generates RM7mil for the group,” he said.

DMB is also constructing a RM160mil printed circuit board manufacturing plant for a Japan-based company on the mainland.

It had completed works worth RM110mil for the plant and the balance would be finished by year-end, said Mazlin.

The group has also engaged a senior Japanese director to help service Japanese multinationals in Malaysia.

“This is a huge market. Just in the northern region alone, there are over 100 Japanese companies in operation,” Mazlin noted.

Besides contracts in hand, DMB has recurring orders for its polymer compounds used in the power cable industry, downstream process chemicals for oil and gas refineries, and the daily heavy lift services, which generates between RM5mil and RM8mil for the group monthly.

The group’s oil and gas division is by far the largest earnings contributor, accounting for more than 70% of pre-tax profits, according to Mazlin.

He said the next one to two years would be very challenging for the group, due to the global economic crisis.

“In these challenging times, our main priority is to increase market share, strengthen our management team, streamline operations, form strategic partnerships with existing players as well as undertake selective expansion and add-on acquisitions,” Mazlin said.

He added that the group had good cashflow, with low gearing levels and was in a net cash position.

For the first quarter ended March 31, the group posted RM4.4mil in pre-tax profit on revenue of RM37.5mil compared with RM3.8mil and RM27.6mil respectively a year ago.

Daya Materials is principally involved in the provision of oil and gas products and services, specialty chemicals, advanced polymers as well as technical services.