MECOM with 42pct y-on-y jump in revenue during H1 thanks to new steel structure business segment

MECOM Power and Construction Limited ended the first half of this year with a 42 per cent year-on-year jump in revenue, with a total of MOP592.2 million (US$73.2 million) reported.

According to the group’s latest financial report, despite the increase, net profits reported by the engineering contractor remained almost unaltered at MOP54 million in this first six months.

The company headed by Kuok Lam Sek operates in both the civil engineering industry and the high voltage power substation construction industry in Macau, having recently diversified to EV charging services and steel structures business

The largest percentage of its revenue between January and June originated from its construction and fitting-out works, which contributed to MOP261.9 million or 44 per cent of the total during the period under review, but with its new steel structure business segment now adding MOP209.3 million to the company’s numbers.

The group’s revenue from the construction business decreased by MOP32.3 million mainly due to ‘substantial construction progress’ in various large-scale projects regarding the Studio City phase 2 development in which it is involved.

By the end of the first half of this year, MECOM held construction contracts on hand yet to be completed with an aggregate contract value of approximately MOP884 million.

The COVID outbreak in Macau in mid-June 2022 also interrupted part of the construction and fitting out works progress leading to a surge in costs.

During the same period, MECOM’s EV charging business reported MOP1.3 million in losses due to costs for the installation of EV charger facilities and charging cabinets for lithium-ion phosphate batteries in Macau and the Guangdong Province, the PRC; plus depreciation costs.

As of June 30 2022, the Group had 301 employees in Hong Kong, Macau and the PRC.

As for future prospects, MECOM is currently developing charging systems with different speeds, namely slow, medium and fast, and a smart charging network, to meet the demands of drivers in Macau and the Greater Bay Area.

In July 2022, MECOM International successfully also won the bid for the land use rights of a piece of land in Gujing Town, Xinhui District, Jiangmen, Guangdong Province on which it will set up and operate manufacturing facilities in order to expand the Group’s business presence to cover the field of production and manufacturing.