Engineering firm West River bids for data centre-related project in Johor

• In a bourse filing on April 29, West River, which specialises in mechanical and electrical engineering, noted it had 26 contracts with a total unbilled order book of RM247.30 million.

KUALA LUMPUR (May 5): Newly listed West River Bhd (KL:WESTRVR) is currently bidding for a data centre-related project in Johor, and is also keen to have a foothold in hotel development.

"We are currently bidding for a data centre project in Johor. Johor has seen a high volume of tender inquiries,” group managing director Lim Yong Lai (pictured) told a press conference on Monday.

Lim said this is in line with the company's plans to expand beyond the Klang Valley, where it derives most of its revenue.

"Currently, approximately 80% of our revenue is derived from the Klang Valley, and we are actively exploring growth prospects in Penang and Johor,” Lim said.

He noted that each data centre requires approximately nine to 12 months to complete, and that these projects currently account for 13% of the company’s tender book. 

In a bourse filing on April 29, West River, which specialises in mechanical and electrical engineering, noted it had 26 contracts with a total unbilled order book of RM247.30 million.

Further, West River is also eyeing hotel construction, with proposed developments in Penang and Langkawi.

While still in preliminary stages, Lim hinted at possible collaborations with established hotel brands such as Hilton and Grand Continental.

Lim estimated that the planned expansion initiatives in Penang and Langkawi could lead to a 5% to 8% increase in revenue.

Meanwhile, Lim said West River is exploring the possibility of establishing new factory sites in Rawang and Semenyih, citing the relative affordability of land in these areas. 

"Our main priority is to increase production capacity—the initial plan involves acquiring land, securing the necessary approvals, and constructing new facilities—a process we estimate will take around three years in total.

"We are also considering the option of purchasing ready-built factories, which could significantly shorten the timeline. Ultimately, the approach we take will depend on market conditions,” Lim said.

For the fourth quarter ended Dec 31, 2024 (4QFY2024), West River Bhd reported a net profit of RM3.22 million on revenue of RM34.34 million. The majority of its revenue—RM32.66 million or 94.8%—was driven by its core segment, which provides electrical engineering and air-conditioning and mechanical ventilation services.

For the full FY2024, the group posted a net profit of RM11.46 million and registered a revenue of RM122.74 million. There were no comparative figures for the preceding corresponding quarter and year-to-date, as it was the company's first interim financial report (for the fourth quarter ended Dec 31, 2024).

Meanwhile, Lim said although West River had no immediate dividend policy in place, it will review this decision in two to three years.

At Monday's noon break, West River shares were one sen or 2.6% lower at 38 sen, valuing the group at RM136 million.

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