Company Overview

Alpina Holdings Limited is an established Singapore-based contractor specialising in providing integrated building services (IBS), mechanical and electrical (M&E) engineering services and alteration and addition (A&A) works with a long operating history of over 17 years.

The Group provides IBS and M&E engineering services mainly as main contractor and provides A&A works as subcontractor. The Group has obtained the grading of L6 for its registration under the ME15 (Integrated Building Services) Workhead, which is the highest grading under this Workhead and allows the Group to participate in tendering for and executing IBS projects in the public sector with no tendering limits and project value limits under this Workhead. The Group is engaged in both public and private sector projects for IBS, M&E engineering services and A&A works.

1. What has been Alpina Holdings’ priorities since making its trading debut on the Singapore Exchange’s Catalist board?

• Anchored by our business model as an integrated facilities management specialist, we remain focused on operational execution and committed to the timely delivery of our customers’ projects, which are predominantly public sector customers, such as government ministries, statutory boards and public education institutions.

• Aligned with Singapore’s pursuit for green economic growth and smart city initiatives, Alpina has been accelerating our efforts to build up our capabilities in these areas over the recent years, particularly in solar energy and energy efficiency technologies.

• In July 2023, the Group announced that our wholly-owned subsidiary was awarded two contracts to undertake the design, installation, construction, testing and commissioning of the solar photovoltaic systems. They are expected to be completed by December 2024, with total provisional contract sum of approximately S$117.2 million.

2. Describe how Alpina Holdings aims to expand its business presence in the renewable energy and smart city market segments.

• We believe that we are at the forefront of Singapore’s renewable energy and smart-city transition. Our expanded portfolio of products and services that allows real-time analytics can provide growth opportunities in our markets.

• As solar energy adoption gains pace in Singapore, our accumulated technical know-how and track record will position us well for opportunities ahead.

• There will be more zero-energy buildings in Singapore that employ energy-efficient technologies, circular materials, and low-carbon innovations.

• We are confident that the measures we took in recent years will enhance our “green” growth drivers and continue to allow us to capitalise on the growth opportunities in our targeted market segments.

3. Elaborate on Alpina Holdings’ Main Business Segments and Revenue Drivers.

• Alpina’s IBS business segment is a major contributor to the Group’s revenue, with specified contract period that generally ranges from 1 to 4 years, sometimes up to 6 years.

• The Group currently holds 15 Workhead registrations and 2 builder licenses with the Building and Construction Authority (BCA).

• We have attained the highest grading of L6 for its registration under the ME15 (Integrated Building Services) and ME05 (Electrical Engineering) Workheads, which allows us to undertake projects in the public sector with no tendering limits and no project value limits under the respective Workheads.

• The Group’s projects are all located in Singapore with predominantly public sector customers, such as government ministries, statutory boards and public education institutions.

4. What is Alpina Holdings’ strategy to remain competitive with its predominantly public sector customer-base?

• Alpina’s established presence and proven profile in the IBS, M&E engineering and A&A works industry serves as an advantage for us to maintain existing customers and secure new business opportunities.

• With our growing number of in-house technicians that are skilled in performing various types of maintenance works, we are able to cater for the manpower and skills requirements for a variety projects with a wide scale of complexity. We can also maintain more control over the quality and timeline of the services we provide.

• Our track record in public sector projects would be considered favourably by different authorities and statutory bodies of the Singaporean Government. With our qualifications in tendering for public sector projects of varying scale, we believe that we are well-positioned to capture any future growth opportunities in targeted markets.

5. What Are Some Alpina Holdings’ Recent Highlights and Milestones in Recent Months?

• Alpina announced in July that it has secured a total of 13 contracts with an aggregate Provisional Contract Sum of approximately S$216.9 million during the first six months of 2023.

• Most of the contracts are public sector projects, with the project owner ranging from a town council, a statutory board of the government or a ministry with varying completion dates ranging from December 2024 to June 2027.

• Public sector projects are testaments to our reputation and strong capabilities in our core industry domains. We have also added new contracts from the private sector which will further augment our track record, particularly within the renewable energy sector in Singapore.

6. What Were Alpina Holdings’ Biggest Headwinds and How Did It Overcome Them?

• Alpina’s profitability was impacted by higher labour costs in 1H2023, mainly for contracts secured prior to the pandemic.

• After Covid restrictions were eased, these projects required more works as there were minimal maintenance done before we were given access, affecting our operating margins.

• Alpina had to allocate more resources to these projects to keep up with the project timelines, affecting our gross profit margins due to higher labour and subcontracting costs.

• Despite this headwind, the Group’s three business segments remained profitable with the IBS business segment continuing to be the majority contributor in 1H2023.

7. What Are Alpina Holdings’ Strategic Plans?

▪ We Have a Three-prong Approach in Our Strategic Plans to Expand Our Growth Ahead:

o We aim to expand the scale of our existing business by strengthening manpower and equipment resources to take on more and/or higher value works for public and private projects, particularly in the solar energy and smart city sector.

o We are strengthening and accelerating the extension of our Integrated Facilities Management (IFM) services as more building facilities are aging and require an advanced degree of care and management. There is also a rising need for customised and integrated solutions in redeveloped buildings with overlaps between our IBS services and core IFM services allowing transferring of skills, know-how, expertise, and experience.

o Lastly, we will leverage on our network and explore merger and acquisition opportunities with parties in complementary businesses in Singapore and/or the region to gain access to new markets and strengthen our market position.

8. What are some market opportunities that Alpina Holdings sees in this current environment?

• We see 3 macro trends that provide strong market prospects for our business model:
  i. BCA expects the total construction demand to reach between S$25 - S$32 billion per year from 2024 to 2027 and the industry outlook for IBS, M&E engineering and A&A works remain positive.
  ii. The developments and measures under the BCA’s Real Estate Industry Transformation Map are expected to drive demand growth for IFM and IBS services, particularly for public sector projects.
  iii. The rising trend of IBS contracts evolving into IFM works, which also cover building and M&E maintenance and other associated services is expected to create new opportunities for IBS and IFM contractors.

• Singapore’s objectives as a Green and Smart Nation on how to improve city services, reduce energy consumption, optimise transportation systems and enhance public safety, are also seen as opportunities for Alpina Holdings – especially some of the measures announced under Singapore Green Plan 2030.

9. Could you share some of the key ESG factors that are material to Alpina Holdings and how that can create long-term value for your stakeholders?

• Our 4 most relevant, significant factors are:
  i. Environmental Regulatory Compliance: We seek to incorporate green design, sustainable materials, and efficient construction practices. We are compliant with the government’s air quality, noise and dust pollution requirements.
  ii. Employment Practices: We adopt fair and performance-based recruitment and employment practices to attract the bestsuited individuals and retain existing employees. 
  iii. Occupational Health and Safety: We are dedicated to creating a safe working environment with safety work measures and monitoring at work sites.
  iv. Business Conduct and Ethics: The Group is fully committed in achieving the highest corporate governance standards and have adopted zerotolerance for acts such as fraud, bribery, and corruption.

10. Why Should Investors Take a Closer Look at Alpina Holdings?

• Direct proxy to the multi-billion market prospects in Singapore’s construction, green economy and smart city initiatives: Singapore’s total construction demand is expected to reach between S$25 - S$32 billion per year from 2024 to 2027. In addition, Singapore continue to advance towards a smarter city and greener economy with long-term initiatives that require billions of investments.

• Alpina’s business model, track record (serving predominantly public sector customers such as government ministries and statutory boards as well as public education institutions) and core competencies in IBS, M&E and A&A, makes us well-positioned towards strong market prospects in the construction, green economy and smart city initiatives in Singapore.

• Growing order book: Just in the first six months of 2023, Alpina announced that it has secured a total of 13 contracts with aggregate Provisional Contract Sum of approximately S$216.9 million, which provide good visibility for the Group’s future.

10 in 10 – 10 Questions in 10 Minutes With SGX-listed Companies

Designed to be a short read, 10 in 10 provides insights into SGX-listed companies through a series of 10 Q&As with management. Through these Q&As, management will discuss current business objectives, key revenue drivers as well as the industry landscape. Expect to find wide-ranging topics that go beyond usual company financials.

This report contains factual commentary from the company’s management and is based on publicly announced information from the company.

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