Kimlun bags two construction contracts worth RM95.4 mil in Johor Bahru

• The contracts, obtained via its wholly-owned unit Kimlun Sdn Bhd, are for the construction of one block of affordable apartments, 166 units of link houses, ancillary building and infrastructure.

KUALA LUMPUR (June 9): Kimlun Bhd said it has secured two construction contracts in Johor Bahru from Bandar Nusajaya Development Sdn Bhd worth a total of RM95.41 million.

The contracts, obtained via its wholly-owned unit Kimlun Sdn Bhd, are for the construction of one block of affordable apartments, 166 units of link houses, ancillary building and infrastructure.

In a bourse filing, Kimlun said the projects are expected to be completed in the second quarter of 2025, and will contribute positively to its earnings and net assets during the contract period.

Last week, the group bagged a RM237.63 million contract from Bayu Melati Sdn Bhd for the main building works for two blocks of service apartments in Selangor.

Meanwhile last month, it accepted two contracts from Horizon Hills Development Sdn Bhd, amounting to RM94.5 million, to build 78 units of shop offices and a shopping mall in Pulai, Johor.

Kimlun returned to the black for the first quarter ended March 31, 2023 (1QFY2023) with a net profit of RM412,000, versus a net loss of RM6.09 million a year earlier, on improved profit margins. However, revenue decreased to RM173.17 million from RM173.95 million amid lower revenue contribution from the property development division in the absence of sales of the first phase of the Bukit Bayu project in Shah Alam.

The group had a construction balance order book of RM1.42 billion and a manufacturing balance order book of RM0.36 billion as at March 31, 2023.

At Friday’s closing bell, Kimlun’s share price was 2.5 sen or 3.33% lower at 72.5 sen. This gives the group a market capitalisation of RM256.2 million.