KUALA LUMPUR (Feb 4): Ikhmas Jaya Group Bhd has bagged a RM65.3 million contract from Messrs Kayangan Kemas Sdn Bhd to undertake subcontract works for the construction of a bridge at Interchange No 7 of the Peringgit Interchange and associated works in Melaka.

In a filing with Bursa Malaysia yesterday, Ikhmas Jaya said its wholly-owned subsidiary, Ikhmas Jaya Sdn Bhd, had agreed and accepted the letter of award from Kayangan Kemas for the proposed project.

The subcontract works entail supplying materials, labour and machinery for the construction of the bridge and associated works.

“The subcontract work is for a period of 18 months and is expected to commence in March 2016 and complete by August 2017,” said Ikhmas Jaya.

The project is expected to contribute positively to the group’s earnings and net assets for the financial year ending Dec 31, 2016 (FY16).

For the third financial quarter ended Sept 30, 2015 (3QFY15), Ikhmas Jaya posted a net profit of RM7.44 million, a 6.4% increase from RM6.99 million a year ago. Revenue, however, was 11.6% lower at RM63.52 million from RM71.84 million in 3QFY14.

For the nine-month period (9MFY15), net profit jumped 44.9% to RM22.88 million from RM15.78 million, while revenue inched slightly higher at RM204.28 million from RM198.54 million in 9MFY14.

Ikhmas Jaya shares closed 0.5 sen or 0.79% higher at 64 sen yesterday, giving it a market value of RM332.8 million.

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This article first appeared in The Edge Financial Daily, on Feb 4, 2016. Subscribe to The Edge Financial Daily here.