Sunway Construction secures RM140m worth of jobs

KUALA LUMPUR (Oct 13): Sunway Construction Group Bhd (SunCon) has bagged two contracts worth a combined RM140 million, bringing its outstanding order book to RM6.7 billion.

In a filing with Bursa Malaysia yesterday, SunCon said its two subsidiaries — Sunway Geotechnics (M) Sdn Bhd (SunGeo) and Sunway Concrete Products (S) Pte Ltd (SCPS) — had accepted a letter of award by Ahmad Zaki Sdn Bhd and a letter of intent by Chiu Teng Construction Co Pte Ltd respectively.

SunGeo will undertake substructure works for a proposed mixed development in Jalan Hang Tuah/Jalan Pudu here for Messrs BBCC Development Sdn Bhd for RM74.77 million. The project is for a period of 10 months.

At the same time, SCPS will supply and deliver precast components for the building works under Clementi Neighbourhood 2 Contract 3 involving 1,179 dwelling units for S$20.88 million (RM65.08 million). The contract is for a period of 21 months.

“The works are expected to contribute positively to the earnings of SunCon from the financial year ending Dec 31, 2017 onwards,” it said.

“The works are subject to normal construction risk of material price fluctuation. However, with the past experiences and expertise of SunGeo in bored piling projects and SCPS in supply of precast components, this risk could be mitigated,” SunCon added.

SunCon shares closed down one sen or 0.43% at RM2.31 yesterday, bringing a market capitalisation of RM2.98 billion.

This article first appeared in The Edge Financial Daily, on Oct 13, 2017.

For more stories, download pullout here for free.

Sunway on track to exceed RM1.3b sales target, declares dividend
New sales outlook for Sunway seen to remain stable
Sunway to dispose of stake in Singapore JV for RM118m