Kimlun bags RM134m contract from Sunway unit to build houses in JB

• The project, which is expected to be completed in the third quarter of 2026, is expected to contribute positively to Kimlun Group’s earnings and net assets for the financial years during the contract period.

KUALA LUMPUR (Jan 31): Kimlun Corp Bhd has secured a construction project in Johor Bahru, worth RM133.6 million, from Sunway Parkview Sdn Bhd, the 60%-owned subsidiary of Sunway Bhd.

The project involves main building works for houses, ancillary buildings and amenities in a development located in Johor Bahru, Kimlun said in its announcement to Bursa Malaysia.

The project, which is expected to be completed in the third quarter of 2026, is expected to contribute positively to Kimlun Group’s earnings and net assets for the financial years during the contract period.

For the cumulative nine months ended Sept 30, 2023, Kimlun’s net profit sank 97.88% to RM402,000 versus RM19 million a year earlier, as revenue dipped to RM588.68 million from RM592.16 million while cost of sales rose RM22.92 million to RM546.89 million and finance costs climbed RM1.94 million to RM11.45 million.

As at end-September 2023, Kimlun’s construction balance order book stood at approximately RM1.86 billion while its manufacturing balance order book came in at RM290 million.

At Wednesday’s closing bell, shares of Kimlun were one sen or 1.19% lower at 83 sen. This gives the group a market capitalisation of RM291.6 million.

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