KUALA LUMPUR (Aug 24): Ho Hup Construction Co Bhd has bagged a RM137 million contract for upgrading works under phase two of the Klang Valley Double Track (KVDT) project.
The group said the three-year contract, awarded by Dhaya Maju Infrastructure (Asia) Sdn Bhd, entails the design, construction and maintenance of the proposed upgrading of Keretapi Tanah Melayu Bhd's stations and facilities.
"The KVDT project is the third contract win for the group in the last three months. We believe the group's expertise and track record in rail infrastructure projects put us in a good position to secure more contracts in the coming months," the group said in a filing with Bursa Malaysia.
"With the government's plan to speed up implementation of rail infrastructure projects to create multiplier effects and spin-off economic activities that are dearly needed at this point of time, we will be positioning our bids competitively," added Ho Hup group chief executive officer Datuk Derek Wong Kit-Leong.
Currently the group's tender book stands at RM2.46 billion, of which RM814 million is in rail-related projects.
In May, Ho Hup secured two rail-related contracts totalling RM102.5 million from China Communications Construction (ECRL) Sdn Bhd for work packages in the East Coast Rail Link (ECRL) project. Work on the ECRL project commenced in June and is expected to be completed in 30 months.
Wong said the ECRL and KVDT contracts are expected to contribute positively to the revenue, earnings and net assets of Ho Hup group, and are not expected to have a material effect on the group's gearing for the financial year ending Dec 31, 2020 until the expiry of the contracts.
Ho Hup's share price closed unchanged at 47.5 sen today, for a market capitalisation of RM195.88 million.
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