OCK to continue expanding its green energy segment
PETALING JAYA: OCK Group Bhd’s strategy in increasing streams of recurring income has kept it resilient during the pandemic.
Moving ahead, the group will continue to expand its green energy segments through acquisitions of solar farms with good feed-in tariff rates and build on its telecoms business.
This will contribute different streams of revenue from a multi-business portfolio, group managing director Sam Ooi Chin Khoon (pic) said in OCK’s newly released 2020 Annual Report.
He added that the group plans to participate in large scale tenders in the future.
OCK is involved in telecoms network services and products, green energy and power solutions and mechanical and engineering services.
Apart from Malaysia, its regional footprint stretches to Indonesia, Myanmar, Cambodia, China and Vietnam.
For the financial year 2020 (FY20), the company reported revenue of RM473mil, almost the same as a year earlier. Net profit stood at RM30mil.
The group’s recurring revenue contributed a total of 65.9% of its total revenue for FY20 versus 50.4% in FY19.
FY20’s total recurring revenue increased by 30.9% to RM312mil.
Ooi said OCK is heavily involved in building infrastructure networks to complement high demand for data such as fiberisation which helps upgrade telecommunication sites to 4G as well as increase the number of towers for nationwide coverage in preparation for the transition to 5G.
As at end FY20, OCK owned more than 4,300 telco sites across the Asean region, with 500 sites in Malaysia, 1,100 in Myanmar and another 2,700 in Vietnam.
On managed services, it manages 5,300 sites in Malaysia and 44,000 sites in Indonesia, giving it a market share of 15% and 44.7% respectively.
The segment was the second largest contributor to its recurring income for FY20.
“We will continue to expand our services to various telecom operators, providing them value add by reducing their operational expenses in managing these towers, ’’ Ooi said.
Its green energy and power solutions business contributed approximately 6% of the group’s overall revenue. It owns 17 solar farms, generating 11.3MW in Malaysia.
Its total expenditure in FY20 was RM139mil, used for expansion in the towerco and solar farm acquisitions.