Ekovest close to securing RM400m more construction jobs within FY17

KUALA LUMPUR (Nov 23): Ekovest Bhd said it is close to securing about RM400 million more contracts for its construction division within financial year ending June 30, 2017 (FY17), which will boost its orderbook to exceed RM7 billion.
 
Ekovest managing director Datuk Seri Lim Keng Cheng said the group’s orderbook currently stands at RM6.6 billion — excluding its recent contract wins from Kuala Lumpur City Hall (DBKL) — which will keep the company busy over the next three to four years.
 
“We are targeting to add about RM800 million more to our orderbook. Out of the RM800 million, about RM400 million comprises the recent DBKL awards, while the balance will include the 1Malaysia Civil Servants Housing Programme (PPA1M) units and other contracts from DBKL,” he said, without revealing specifics.
 
Speaking to the media after the group’s annual general meeting (AGM) today, Lim said Ekovest has received the letter of intent from the government, but has yet to obtain final approval.
 
“More or less, we have been selected already, but there’s still the final endorsement by the government. We will announce when we obtain the letter of approval,” he said.
 
To recap, the group’s wholly-owned subsidiary, EkoRiver Construction Sdn Bhd, had earlier this month received the letter of acceptance from DBKL for Package 1C, 1D, 4A and 4B, with respect to beautification works worth a combined RM412.74 million.
 
Its RM6.6 billion orderbook currently comprises Phase 2 and Phase 3 of Duta–Ulu Kelang Expressway (DUKE), EkoCheras, beautification works at Precinct 7, design and construction of UTHM Engineering and Electronic Faculty, construction of shop offices, as well as improvement of the Klang and Gombak rivers.
 
Lim said the group is tendering for approximately RM10 billion worth of projects, including the Light Rail Transit 3 (LRT3) and the Pan Borneo Highway.
 
“With the mega infrastructure projects that are coming onstream in the next few years such as the Mass Rapid Transit 2 (MRT2) lines and other highway construction projects, combined with our track record and financial strength that we possess — these will give us an edge in the tendering process,” he said.
 
Ekovest’s share price fell 2 sen or 0.85% to RM2.33 at 3.40pm today, giving it a market capitalisation of RM1.99 billion. — theedgemarkets.com