KUALA LUMPUR (Sept 4): Crepe paper masking tape manufacturer Central Global Bhd (KL:CGB) has bagged a RM616.4 million contract for the Pan Borneo Highway Sabah Phase 1B project.

In a bourse filing on Wednesday, the company said the contract was granted to its unit, RYRT International Sdn Bhd, from Pembinaan Urusmesra Sdn Bhd for the upgrading of the road from the Lahad Datu Bypass to Kampung Sandau under Work Package 22.

The project is expected to start on Sept 30, 2024 and conclude on March 29, 2028. Under the scope of the contract, RYRT will be responsible for the supply of plant, machinery, labour, and materials required for the construction and completion of the project.

The group diversified into the construction sector in 2019.

Central Global said the project award has significantly increased its order book by 456.3% and amounting to RM751.5 million. It expects the contract to provide consistent revenue generation for the group over the next three and a half years.

Central Global group managing director Chew Hian Tat expressed confidence in the group’s capability to deliver large-scale projects and anticipates further contract awards from its tender book, valued at RM3.7 billion.

“This is a strong indication of the group’s capability to undertake and deliver a megaproject of this magnitude.,” he said in a statement.

At Wednesday’s closing bell, Central Global’s share price rose one sen or 1.12% to 90 sen, valuing the group at RM680.41 million.

Central Global posted a net profit of RM350,000 for the first half of the year ended June 30, 2024, down 85.7% from RM2.44 million in the same period last year, as revenue fell 44.3% to RM61.75 million from RM110.94 million.

On Tuesday, shares in Central Global came under selling pressure, dropping more than 15%, prompting Bursa Malaysia to suspend the counter's intraday short-selling (IDSS).

The regulator said in a filing that IDSS in Central Global would be reactivated 8.30am Wednesday.

At the start of trading on Tuesday, shares of the company rose 12.3% to an intraday high of RM1.19 before nosediving to 89 sen at market close, down 16% from the previous day's close of RM1.06, which was its highest closing price in history.