Investor Q & A

Q. What is the strategy of Allgreentech in a nutshell?


Allgreentech’s strategy is to buy, build and grow a portfolio of companies that are aligned directly or indirectly to the Energy, Resources and Environment sectors. The objective is to develop a strong business and financial foundation by accelerating growth though continuous business development and identifying new technologies and bringing them to market either by strategic acquisitions or through collaboration with key players

Q. Is Allgreentech a green technology company?


The traditional view of a green technology company is that they have to be producing something that offers a “green” end product. Allgreentech takes a different approach.

We are not a typical “green” technology company in that sense; instead we believe that every company has the potential to become “green” so you can look at us as more of a green innovator and leader. We acquire businesses and enhance or make them "green" leaders in their industry while maximizing our portfolio value.

Q. Why has Allgreentech chosen this particular market?


Our vision for Allgreentech is for it to become a green ‘transformer’ company and a major player in the international Energy, Resources and Environment sectors and our mission is to provide clean and renewable energy solutions for the world by using less resources and creating a cleaner environment for future generations.

Naturally, In line with its vision, Allgreentech chose to identify businesses with the potential for “going green” and in essence what we have done here is secured a strong base to start from. Moving forward (very near future) we are working on some very big projects that anyone in the "green" sector would be glad to be a part of as an investor, client or supporter.

Q. What sectors and regions is Allgreentech focusing on?


Allgrentech is focused on Energy, Resources and the Environment through its three Divisions namely; Alternative Energy, Industrials and Properties. As an Asian based organization, our strength lies in Asia and future plans are to do business in Australia/NZ, Europe, Africa and the Americas in stages.

Q. What are the benefits of the holding structure?


In addition to the tax advantages, the holding structure is designed to separate the management company from the operating companies. This enables us to reduce operating costs, save time, increase efficiency and improve the bottom line.

Q. What are the synergies between the different companies in the portfolio?


One of the businesses in the group is involved in serving the industrial, infrastructure and the oil and gas sectors, another ensures a continuous supply of raw materials for its clients and the properties group provides a stable operating location for the subsidiaries. They are all aligned to the overall objectives of the group.

Q. What advantages do the companies have being Malaysian and how can they leverage this in an international context?


The Malaysian Government is investor friendly and supports investments in its economy and the growth of businesses. Among Asian countries that have a combination of good infrastructure, rule of law, an educated workforce, conducive environment to do business and a growing local market, Malaysia is a lively place and one of the least expensive places to live and do business in. We can leverage on these advantages especially with low operating costs, we can provide quality goods and services to other countries at very competitive prices and win more business globally.

Q. What are the main competitive advantages of Allgreentech’s subsidiaries both within Malaysia and internationally?


Our core competitive advantage is our ability to provide ISO quality and other value added services at highly competitive prices compared to European, Japanese, American and other advanced countries.

Q. What are the growth prospects of the companies outside those offered through its internal links? Will the companies be pursuing an independent growth strategy?


Each company in the group will certainly pursue an independent growth strategy by expanding their services to local and global clients. All the subsidiaries in the group operate as stand alone businesses and are responsible for their own bottom line. They add value by referring businesses to each other and sharing operational costs.

Q. Do economic conditions affect all portfolio companies in the same way or are there certain hedging benefits, is the portfolio diversified enough?


Allgreentech’s has a diversified portolio in critical areas like energy and resources which will not affect the business much during an econmic downturn. Coupled with its policy to be financially strong and debt free, that is the best hedge against harsh economic conditions.

The Industrial Division has mature and profitable businesses that take care of the current and ongoing financial needs of the business providing long-term stability for the group.

The Properties Division invests in long-term assets to provide investors with medium and long-term growth and security.

The Alternative Energy Division is focused on investing in businesses that help to save energy, produce energy or recycle energy. This is in addition to saving resources, doing more with less and recycling.

Q. Allgreentech looking to make more acquisitions?


Yes, plans are underway to acquire a number of businesses in the low energy consumption lighting segment as well as in solar and wind energy production.

Q. Will there be fundraisings in the near future?


The company will be raising funds if there is a need.  The Board and management of Allgreentech is focused on maximizing shareholders value and prefer to acquire businesses with internally generated funds. While we do not discount raising of funds in the near future, if a profitable opportunity arises that can enhance shareholder value, we will most certainly bring it to the attention of our shareholders for their consideration.

Q. What are the intentions of Allgreentech with its portfolio companies?


The intention of Allgreentech and its subsidiaries is to ensure that shareholder value is enhanced and the environment and energy needs for future generations are preserved. We will also streamline the business operations to be in sync with the overall game plan and ensure they operate within the operating guidelines of Stock Exchange requirements.

Q. What are the objectives for a public listing of the company?


Main objectives include;

  • To enhance and unlock the inherent value of the companies in the group
  • To reward investors with higher returns from appreciating stock values and dividends
  • To showcase the company as a strong and stable company to do business with

Q. Where do you plan to list?


Allgreentech’s is exploring the possibility of listing on a major stock exchange either in the US, UK or in Asia.  It will not only provide business exposure in the respective countries but enhance its global prospects for growth.  Investors who can recognize a good opportunity will want to include our firm on their portfolio of favourite Asian stocks as a profit trailblazer.


Q. What is the single most important external factor influencing the result of Allgreentech?


Government policies, especially the tax structure for going “green”.