Heitech Padu records higher net performance thanks to new, existing contracts

  • Net profit grew from 111% to RM13.1mil in FY2020
  • Secured new contracts despite challenging year

Heitech Padu records higher net performance thanks to new, existing contractsHeiTech Padu Bhd (HeiTech) concluded its financial year ended Dec 31(FY2020) with higher net performance and grew 111% to US$3.1mil (RM13.1mil) from US$1.5mil (RM6.2 mil) last year.

This was mainly attributed to the company's success in securing new contracts and initiatives despite the challenges faced from competitors, economic uncertainty and restricted movement control orders (MCO), the company said in a statement. 

Revenue dipped slightly to RM325.4mil from RM360.8mil in the previous year whilst earnings before interest, impairment, taxation, depreciation and amortisation (EBIITDA) in 2020 was RM38.5 mil, as opposed to RM39.9 mil in 2019, This reflected a tough period that the group sustained in 2020, the company said.

[RM1 = US$0.24]

“HeiTech navigated the year with perseverance and dedication from its employees who were able to steer the group safely out of 2020,” said Mohd Hilmey (pic), executive deputy chairmHeitech Padu records higher net performance thanks to new, existing contractsan/ president of HeiTech Padu.

He added that the organisation managed to deliver contractual obligations, maintain and fulfil all service level agreements with customers during these trying times. 

Among the major projects secured by the group in 2020 include the mainframe upgrading and application maintenance contract for Jabatan Pendaftaran Negara (National Registration Department); wide area network contract renewal connecting Tesco Malaysia's headquarters to Tesco's disaster recovery centre in Thailand, which is the first international link implementation for the commercial sector.  

The company also secured the extension of maintenance contracts from Jabatan Pengangkutan Jalan (National Transportation Department) and Jabatan Imigresen Malaysia (Immigration Department). 

It successfully commissioned of the latest IBM’s z15 mainframe for JPN and JPJ, which the company said was the first z15 mainframe implementation in Malaysia.

During the same year, HeiTech launched ezBill and eLIS, the group’s newly developed products to help local authorities transform and digitalise their management and service delivery to customers.

It’s regional presence was also strengthened through the establishment of PT DesaTech Nusantara to provide a financial system for cooperatives in Indonesia, it said.

Moving forward in 2021 and beyond, Mohd Helmi said HeiTech has aligned its strategic direction to respond more effectively to market changes, risks, threats and opportunities. 

“We will expand our offerings and tune up our portfolios both from contracting and transactional-based businesses and will have chartered our strategic direction through our three core segments.

“These segment were given specific targets based on their respective strength, core offerings and market presence. It will also allows us to focus on our go-to-market strategies and optimise the use of our existing resources,” he said.

 

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