ULI ...Nov09

It is bidding for local and overseas jobs worth RM140 million to supply cable support system (CSS).

The projects involve infrastructure, water treatment, power plants and commercial buildings in Malaysia, Australia, Singapore and the Middle East.

U-Li, which manufactures CSS, integrated ceiling system and light fittings at its two plants in Selangor and one in Perak, hopes to secure 75 per cent of the jobs in the current quarter and throughout 2010.

It hopes by securing the higher profit margin from CSS contracts, the company would be able to have a better compounded annual growth rate.

After falling to a net loss in 2005, U-Li posted profits during the last three years, but for the first six months ended June 30 2009, U-Li's net profit dropped to RM8.48 million from RM13.31 million in the same period a year ago.

The CSS market, estimated to be worth RM500 million, is becoming more promising as the government releases new projects to boost the economy.

Year-to-date, the company has secured contracts worth RM120 million, about 35 per cent more than last year.

Among its new contracts are supplying CSS to the new Istana Negara, the Lady Templer Hospital and Hyatt Kuala Lumpur.

U-Li is also supplying its core products to hospitals, schools, several water treatment plants and the Sungai Selangor Phase 3 development.

Going forward, they are looking to penetrate into the European markets. There are a lot of jobs coming up in that region and they want to gain a first-mover advantage for its CSS.

The company is looking to become a major original equipment manufacturer supplier for major players in Japan, Europe and Australia.