CEO Morning Brief

Kimlun Secures Third Construction Contract of the Year Worth RM143m

Publish date: Tue, 28 May 2024, 10:41 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (May 27): Kimlun Corp Bhd (KL:KIMLUN) has secured a construction contract worth RM143.01 million for a serviced apartment project in Johor Bahru.

In a bourse filing on Monday, the Johor-based construction company said its wholly-owned Kimlun Sdn Bhd had accepted the award for the contract from Melia Spring Sdn Bhd, a subsidiary of Eco World Development Group Bhd (KL: ECOWLD), for the project's main building works.

The project is expected to be completed in the fourth quarter of 2026.

This is Kimlun's third construction job secured so far this year. In April, the group bagged a RM150 million construction contract from Astaka Development Sdn Bhd, a subsidiary of the Singapore-listed Astaka Holdings Ltd.

Prior to that, Kimlun in January secured a construction contract worth RM133.6 million from Sunway Parkview Sdn Bhd, a 60%-owned subsidiary of Sunway Bhd (KL:SUNWAY).

After two financial years of being in the red, Kimlun reported a net profit of RM7.06 million for the financial year ended Dec 31, 2023 (FY2023), as revenue rose 12.8% to RM852.57 million from RM 756.13 million in the previous year.

As at end-December 2023, Kimlun’s construction balance orderbook stood at approximately RM1.9 billion.

At Monday’s closing bell, shares of Kimlun were four sen or 2.8% lower at RM1.39. This gives the group a market capitalisation of RM491.2 million.

Source: TheEdge - 28 May 2024

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