KUALA LUMPUR: Federal International Holdings Bhd (FIHB) is upbeat over the company's prospects in the upcoming financial year amidst the transition to endemicity and the acceleration of its venture into renewable energy (RE).

This follows the company's performance for its financial year ended June 30, 2022 (FY22), where its net profit more than doubled to RM13.2 million, attributable to the sale of the factory amounted to RM6.1 million.

Its revenue grew by 8.5 per cent to RM125.9 million, led by its construction and interior-fit-out (IFO) business segments.

FIHB executive director Datuk Choy Wai Ceong said the resumption of construction works had gradually helped its business return to normal.

"We are currently in the midst of negotiations on some of the construction contracts, which will boost our orderbook while our unbilled orderbook supports earnings in the near-term," said Choy.

Choy said the company is negotiating construction contracts worth more than RM250 million, while FIHB's unbilled orderbook stood at RM110 million.

He, however, noted that the outlook is clouded by the current geopolitical tension, as seen by the Russia-Ukraine war, global inflationary pressure, rising interest rates, higher input costs, and the disruption of supply chains.

"Locally, Malaysia is also struggling with the weak ringgit.

"At the same time, the implementation of the new minimum wage and the labour shortages have led to an increase in labour costs," he said.

Choy said that the company's venture into the RE segment is expected to gain momentum in the longer-term expansion strategy.

Its joint-controlled entity - WREA RE Assets Sdn Bhd (WREA), together with Asia Greentech Fund (AGTF), has completed acquisitions of a total of 15megawatts solar plants to date.

On the other hand, Sunview Group Bhd, WREA's technical partner and a leading solar power system provider and solar installation company, recently launched its prospectus in conjunction with its listing on the ACE Market of Bursa Malaysia in the fourth quarter of this year.

As of today, FIHB has a 4.9 per cent direct stake in Sunview.

"With the upcoming listing of Sunview, this will help to drive the development of RE projects in Malaysia and escalate the expansion of our footprint in the RE segment.

"The expansion is in line with FIHB's objective to diversify its earnings stream and our ESG (environmental, social and governance) agenda," added Choy.