KUALA LUMPUR (Jan 16): Bamboo flooring manufacturer Kanger International Bhd has diversified into the construction business by signing six deals totalling RM495.9 million yesterday.
It involves the group undertaking the remaining works at six construction sites in Kuala Lumpur and Pahang, the group said.
The jobs were awarded by the main contractors of the projects, and will provide a steady stream of revenue for the group during the tenure of the deals, Kanger said in a bourse filing.
The scope of works includes management of subcontractors appointed by the main contractors and the handling of financial matters which include fulfilling payments to the sub-contractors promptly, said Kanger.
“We are always looking for new opportunities to expand our income stream and are pleased to mark our maiden entry into the construction sector,” Kanger executive director Steven Kuah Choo Ching said in a statement.
“The signing of the collaboration agreements today bodes well for the group, as it will immediately give Kanger construction contracts that will positively enhance the group’s revenue and earnings over the next few years.
“This paves the way for us to enhance our track record in the construction industry and strengthen our profile, when bidding for other projects in the near future,” he added.
The six construction projects are expected to be completed by December 2023, Kanger said.
“The progressive work done during the construction period of these projects are expected to contribute positively to Kanger’s financial performance in the next three financial years ending 31 December 2021, 2022 and 2023,” it added.
Shares in Kanger finished 0.5 sen or 3.45% higher at 15 sen yesterday, valuing the group at RM339.45 million. The counter saw 34.53 million shares traded.
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