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Tuesday, September 27, 2016

SunCon scores a hat trick, bags RM209m worth of projects

SunCon scores a hat trick, bags RM209m worth of projects
By Supriya Surendran / theedgemarkets.com | September 26, 2016 : 10:45 PM MYT

KUALA LUMPUR (Sept 26): Sunway Construction Group Bhd (SunCon) has bagged three contracts with a combined value of RM209 million, bringing its outstanding order book to date to RM5 billion.

The first contract involves its subsidiary Sunway Construction Sdn Bhd, which has been appointed by MMC Gamuda KVMRT (PDP SSP) Sdn Bhd to undertake a package under Mass Rapid Transit (MRT) Line 2 project.

The job, involving the construction of a viaduct guideway from Sungai Buloh to Persiaran Dagang, Bandar Sri Damansara, carries a contract sum of RM52.52 million and will be completed by September 2017.

In a filing to Bursa Malaysia, SunCon said it has also accepted a letter of intent issued by Sunway Iskandar Sdn Bhd, a subsidiary of SunCon's holding company Sunway Bhd, for two projects in the Medini Iskandar development in Johor.

The first project is for the construction of 88 units of office shop lots, a management office block, a mosque, a garbage storage block, two Tenaga Nasional Bhd substations and relevant facilities on the land in the Medini Zone for RM56.5 million over a 20-month construction period commencing on Oct 1.

The second project in Medini involves earthworks and main building works for a commercial development for RM100 million, over a period of 13 months commencing on Oct 1.

SunCon said the three contracts are expected to contribute positively to its earnings from the current financial year ending Dec 31, 2016 onwards.

Upon the award of the three contracts, SunCon's outstanding order book as at to date amounts to RM5 billion. The new order book replenishment to date totals to RM2.6 billion, which has exceeded the management's target of RM2.5 billion, the company said.

The two Medini projects are deemed related party transactions by virtue of Evan Cheah Yean Shin being a director and major shareholder of SunCon as well as director of several subsidiaries and a major shareholder of Sunway.

SunCon shares were down 1 sen (0.6%) at RM1.61 today, giving a market capitalisation of RM2.08 billion.

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