KUALA LUMPUR (Aug 27): Varia Bhd (KL:VARIA), previously known as Stella Holdings Bhd, has secured a RM410.3 million flood mitigation project in Segamat, Johor.

The company’s wholly-owned Pembinaan Teguh Maju Sdn Bhd has been appointed by Kator Construction Sdn Bhd as a sub-contractor for the Sungai Muar Phase 3 Package 1 flood mitigation plan.

The contract value of RM410.3 million represents about 93% of Varia’s current market capitalisation, which stands at RM442 million. On Tuesday, Varia’s share price closed 4.5 sen or 4.52% higher at RM1.04.

Varia told the stock exchange that the commencement and completion dates for the project will follow the main contract’s 60-month time frame, which started on July 23, 2024, and will conclude on July 22, 2029.

Varia, which is involved in the construction and property development industry, logged a net profit of RM4.92 million for the 12 months ended March 31, 2024, compared to a net loss of RM14.39 million a year earlier, as revenue jumped fivefold to RM148.31 million from RM29.35 million. The profit primarily came from projects managed by Pembinaan Teguh Maju, such as Kuarters Hospital Pulau Pinang.

Varia managing director Datuk Benson Lau Beng Sin and his older brother Datuk Jason Lau Beng Wei are the group’s two largest shareholders with a direct holding of 22.57% (Beng Sin) and 30.83% (Beng Wei). The duo also collectively hold an indirect stake of 6.85% through Varia Engineering & Services Sdn Bhd.