Puncak Niaga Holdings Bhd | APEA - Asia Pacific Enterprise Awards

DYNAMIC, INNOVATIVE AND
PROGRESSIVE IN DRIVING
OPERATIONAL EXCELLENCE
TOWARDS GREATER
SUCCESS AND LONG TERM
SUSTAINABILITY.

Puncak Niaga Holdings Bhd
Construction Industry
Wisma Rozali , No.4 Persiaran Sukan,
Seksyen 13, 40100 Shah Alam,
Selangor, Malaysia
Tel: +603 5522 8589
www.puncakniaga.com.my

Company Milestones

1994

  • Awarded to take over 27 existing water treatment plants formerly under the management of the Selangor Waterworks Department.

1997

  • Listed on the Main Market of Bursa Malaysia Securities Berhad.

2001

  • Received the Certificate of Approval by Lloyd’s Register Quality Assurance ISO 9002:1994, EN ISO 9002:1994, BS EN ISO 9002:1994, MS ISO 9002:1994 for Quality Management System of Wangsa Maju WTP.

2015

  • Signing of Share Sale Agreement between PNHB and Pengurusan Air Selangor Sdn Bhd for PNHB to dispose PNSB and SYABAS to Air Selangor.

2017

  • Murni Estate Sdn Bhd through its subsidiary Danau Semesta Sdn Bhd acquired a whollyowned subsidiary Danum Sinar Sdn Bhd with principle activities in the oil palm cultivation in Murum, Sarawak

2018

  • Acquisition of the entire issued share capital in TRIplc Berhad
Corporate Excellence Category

Puncak Niaga Holdings Bhd

Construction Industry

Introduction

The Puncak Niaga Holdings Berhad (“Puncak Niaga”) Group is the leading regional integrated water, wastewater and environmental solutions provider with involvement in concession and facilities management services, plantation and property development sectors.

Puncak Niaga is an investment holding company whilst its subsidiaries are principally involved in the construction, water, wastewater, sewerage and environmental engineering sectors including undertaking research and development and technology development for the water, wastewater and environmental sectors, management and advisory services, facilities management services and plantation.

Established on 7 January 1997, Puncak Niaga was listed on the Main Board of Bursa Malaysia Securities Berhad (now known as the Main Market of Bursa Malaysia Securities Berhad) on 8 July 1997. As at the end of 31 May 2019, Puncak Niaga’s market capitalisation stood at RM154.3 million. It is the first water treatment and supply concession company to be listed on Bursa Malaysia Securities Berhad under the Infrastructure Project Company guidelines issued by Securities Commission and was reclassified to the Construction sector on 13 November 2015.

After being in the Selangor water services industry since 1994, on 15 October 2015, both PNSB Water Sdn Bhd (formerly known as Puncak Niaga (M) Sdn Bhd) (“PNSB”) and Syarikat Bekalan Air Selangor Sdn Bhd (“SYABAS”) were disposed to Pengurusan Air Selangor Sdn Bhd and ceased to be a wholly-owned subsidiary and jointly controlled entity of Puncak Niaga Group in line with the consolidation of the Selangor water services industry by the Federal Government and the State Government of Selangor.

Corporate Culture

The Puncak Values shape its organisational culture and guides the way the Company run its business. These values are integrated into the business processes and core values: Passionate about business for sustainable performance; United as one in corporate responsibility strategy to align with the Group’s vision – To be the leading regional integrated water, wastewater and environmental solutions provider with involvement in concession and facilities management services, plantation and property development sectors; Nurture human capital towards an exemplary workforce; Corporate Governance guides on the operations in an evolving global business environment; Accountable for all actions and engagement process with the Company’s stakeholders; Knowledgeable in all aspects of business operations and continue to be the trusted and reliable service provider.

Puncak Niaga is committed to upholding the principles of good corporate governance and core values such as quality, value, service, innovation, integrity and trust in the conduct of business which are integral to the Group’s success over the years.

Achievements and Impact

Following on from the commencement of business activities within the Plantation segment in 2017 which added to their value creation in 2018, the Group has expanded diversification into the concession and facilities management segment to add value to the Group’s longterm growth capacities. This was achieved through the completion of the acquisition of TRIplc Berhad on 31 May 2018.

For FY2018, Puncak Niaga performed comparatively better than the previous year as a result of sustained efforts to ensure operational and cost efficiencies. The Group posted a revenue of RM230.47 million, more than double its FY2017 revenue of RM101.28 million. The higher revenue was primarily due to revenue contribution from new concession and facilities management segment of RM131.13 million for the year.

Puncak Niaga has consistently maintained an effective risk management framework and process, which is deeply embedded within its business strategies, as well as operations and management. This has aided in minimising risk exposure in conducting business within a challenging operational landscape, and stay on course with achieving the Group’s long-term strategic objectives.

“Puncak Niaga Group is committed to upholding the principles of good corporate governance and core values such as quality, value, service, innovation, integrity and trust in the conduct of business which are integral to the Group’s success over the years.”

Future Direction

As Puncak Niaga Group seeks to grow its business and deliver value to the stakeholders, the group will look into expanding their operations in areas related to its core businesses and core competencies in water and wastewater, sewerage, environmental engineering and construction, concession and facilities management services, plantation and property development. In the water and wastewater segment, the group will focus on capturing opportunities available by relying on Puncak Niaga’s proven track record and industry expertise. Their future strategies in the environmental engineering and construction segment are focused on completing the Bunus project for the Government while minimizing their losses. Concurrently, the group will explore other viable opportunities within the sector, bearing in mind the Government’s prudent approach towards project costing and budgets which they expect to continue into the future. The plantation sector is expected to continue to cope with market difficulties such as weaker demand leading to a surplus in domestic palm oil stockpile, higher employment costs as set out in the Malaysian Budget 2019, higher forecasts of the Crude Palm Oil (CPO) price for 2019 which are RM2,300.00 per tonne and fertilizer prices are set to rise. Despite this, Puncak Niaga Group is optimistic of the long-term sustainability of this sector, and plan to continue with their target of cultivating new land for development at 1,500 hectares every two years, with a short-term target of clearing 500 hectares of land in 2019. The group’s goal is to increase Fresh Fruit Bunches (FFB) production to more than 100,000 tonnes within the next two years, to drive the profitability of this segment. Since the property market for 2019 is expected to remain sluggish, they have decided to continue with their prudent approach of not exploring opportunities in this sector till the market improves. A favourable market outlook is forecasted for the concession and facilities management sector with UiTM.