The group's wholly-owned subsidiary, SC Estate Construction Sdn Bhd, had secured the letter of award today from Visi Sempena Sdn Bhd, according to a Bursa Malaysia filing. Works are expected to begin on Aug 25, 2017 and scheduled for completion by Feb 24, 2018.
The PR1MA housing project will comprise 732 terraced houses, 492 apartment units, and 10 shop lots. Risks to the project include the availability of skilled manpower and materials, and volatility in material prices, economic conditions, and the business and political landscape, SC Estate Builder added.
The contract is expected to contribute positively towards the earnings of the group for its financial year ending Jan 31, 2018 (FY18), the group said. However, it is not expected to have a material effect on its net assets and gearing for the same year.
For the first quarter ended April 30, 2017, SC Estate Builder posted RM8.87 million revenue, up more than four times year-on-year, thanks to turnover generated from its project management services and building materials trading. Its first-quarter net losses narrowed to RM58,000 from RM260,000 a year ago, due to lower administrative expenses incurred.
Shares in SC Estate closed up 0.5 sen or 16.67% at 3.5 sen per share yesterday, giving it a market capitalisation of RM30.91 million. The counter had seen 2.85 million shares traded. — theedgemarkets.com