Ho Hup wins RM32.4 mil contract to build immigration quarters

KUALA LUMPUR (Oct 5): Ho Hup Construction Company Bhd has been awarded a subcontract worth RM32.4 million from Adegan Senandung Sdn Bhd to construct immigration quarters in Pengkalan Hulu, Perak.

In a filing with Bursa Malaysia today, Ho Hup said it will be responsible for all piling, building, external and miscellaneous works related to the construction of the immigration quarters under the contract.

The duration of the contract is about 156 weeks and scheduled to start on Oct 20, 2016. Ho Hup expects the contract to contribute positively to the Group's earnings for the financial year ending Dec 31, 2016 (FY16) to FY19.

Adegan Senandung Sdn Bhd is a private limited company and a bumiputera contractor that is principally engaged in civil construction works.

None of the directors or major shareholders as well as persons connected to the Group have any interest, direct or indirect, in the award of the contract, the bourse filing stated.

"The directors are of the opinion that the contract is in the best interest of the company after considering, amongst others, the potential financial contribution to the earnings of the company," it said.

Ho Hup closed unchanged at 80.5 sen, with 132,500 shares traded. At its current level, the company is trading at a trailing P/E of 3.66 times and has a market value of RM281.7 million.— theedgemarkets.com

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