KUALA LUMPUR (July 13): Stella Holdings Bhd said its unit has won a RM91.36 million sub-contract for a medium-cost apartment project undertaken by the Penang State Islamic Religious Council in the Seberang Perai Tengah district.

Wholly-owned Mewah Kota Sdn Bhd will carry out structure, architecture, mechanical and electrical works for the project which is part of a mixed development, said Stella in a bourse filing.

The project will feature a 40-storey apartment building with 422 units, a multi-story carpark, two TNB substations, a multipurpose hall, a guardhouse, a management office, a kindergarten, a mortuary management room and an open area.

Stella said Mewah Kota accepted the letter of award from Warisan Kesumi Enterprise Sdn Bhd on Thursday (July 13).

The group expects the sub-contract, which is valid for 25 months, to contribute positively to its earnings during the period.

For the group’s fourth financial quarter ended March 31, 2023, Stella's net profit dropped to RM933,000 from RM3.38 million a year before. This came as the group suffered a revenue loss of RM4.23 million, against a revenue gain of RM16.69 million previously.

The group said the weaker performance was because projects that were recognised in the previous quarters were reclassified as contract assets during the quarter. Additionally, there was a loss from discontinued operation amounting to RM5.06 million incurred by Iris Synergy Sdn Bhd and Stella Kasik Healthcare group.

On a cumulative basis, Stella registered a net loss of RM14.39 million for FY2023 as opposed to a net profit of RM3.38 million for the previous year, as revenue declined to RM29.41 million from RM51.96 million.

Shares of Stella closed seven sen or 8.33% lower at 77 sen, valuing the group at RM51.6 million.