Engineering firm plans RM10 million factory project, aims to capture hotel and data centre markets in Penang and Johor.
West River Bhd, newly listed on Bursa Malaysia’s ACE Market, is planning a major capacity expansion with a new factory in Klang Valley, while also bidding for data centre and hospitality projects in Johor and Penang as part of its nationwide growth strategy.
Klang Valley Factory to Anchor Expansion
Managing Director Lim Yong Lai announced that West River plans to channel RM10 million—or 35.84% of its IPO proceeds—into acquiring land and building a new 35,000 sq ft manufacturing facility in Klang Valley. This would significantly increase its production capacity, particularly for electrical panels and distribution boards.
The group is considering both building the facility from the ground up, which would take approximately three years, and the alternative of acquiring ready-built premises to shorten the development timeline.
Lim stated that while 80% of West River’s current revenue comes from Klang Valley, the company is looking to diversify by entering Johor and Penang. In Johor, it is actively bidding for data centre projects, which now account for 13% of its RM1 billion tender book. In Penang and Langkawi, the company is exploring hospitality construction opportunities.
“Data centres take about nine to twelve months to complete, and demand in Johor is rising sharply,” said Lim. He added that West River’s initial hotel projects in Penang and Langkawi could boost revenue by 5% to 8%.
Financial Health and IPO Utilisation
Following its IPO, West River opened at 39.5 sen, a 1.28% premium over its offer price of 39 sen, giving it a market capitalisation of approximately RM139.5 million. The company plans to allocate RM5.6 million (20%) of its IPO funds to repay borrowings, aiming to lower its gearing ratio from 0.3 to below 0.2 for greater financing flexibility.
Malacca Securities projected a 9.7% CAGR in revenue over the next three years, though Lim noted that West River internally targets a more ambitious 15% growth rate, supported by its aggressive expansion roadmap.
Apart from Klang Valley, West River is exploring land acquisition for additional plants in Rawang and Semenyih, citing their land affordability. These potential sites are expected to support future demand and accommodate rising order volumes from ongoing tenders and unbilled contracts, which currently stand at RM247.3 million across 26 contracts.
Lim emphasized that the priority remains on increasing production capacity in line with demand in mechanical and electrical engineering (M&E), air-conditioning, and mechanical ventilation services, which drove 94.8% of the company’s RM34.34 million revenue in Q4 FY2024.
Despite the company’s strong IPO debut, Lim confirmed that no immediate dividend policy is in place. However, this decision will be reviewed within two to three years, depending on performance and capital needs.
At the Monday noon close, West River’s shares stood at 38 sen, valuing the group at RM136 million. Lim expressed satisfaction with the market’s response, stating, “The demand in the M&E sector remains strong, and we are pleased that investors have confidence in our vision.”
West River’s strategic expansion—from factory development in Klang Valley to ambitious project bids in Johor and Penang—positions the firm for substantial growth in Malaysia’s booming engineering and infrastructure sectors. With a strong IPO launch, a clear roadmap, and focus on national coverage, the company is steadily evolving into a major player in M&E and construction services.
Sources: The Edge Malaysia (2025), The Sun MY (2025)
Keywords: West River Bhd, Klang Valley Factory, Johor Data Centre, Penang Hotel Projects, Engineering Services Malaysia
