Page 12 - Malaysia Builders Directory 2019/2020
P. 12

                 Editorial
  CONSTRUCTION INDUSTRY DEVELOPMENTS
 Sunway Construction Group Bhd’s (SunCon) net profit for the financial year ended December 31, 2018 (FY18) rose 9.4% to RM144.69 million from RM132.29 million in 2017. Revenue grew 8.7% to RM2.26 billion from RM2.08 billion previously, due to the construction segment which compensated for the reduction in revenue from the precast segment.
Its construction segment reported stronger revenue of RM2.12 billion from RM1.93 billion previously, mainly due to higher contribution from all divisions - civil, geotechnical, building and mechanical, electrical and plumbing. Meanwhile, the precast segment reported lower revenue of RM133.7 million compared to revenue of RM144.9 million previously, due to the completion of several projects.
On prospects, SunCon had secured RM1.6 billion in new orders for the year ended 2018. For the year ending 2019, the group is targeting RM1.5 billion in new orders. SunCon said while there have been various decisions by the government to reduce cost, cancel and put on hold certain mega projects as an on-going effort for debt rationalisation, there are still pockets of opportunity in Malaysia with the Large Scale Solar 3 (LSS3) worth about RM2 billion, development of hospital by Malaysian Public Works Department (JKR) worth RM29 billion and the Subang Aerotech Park by Khazanah Nasional Bhd. Besides that, the group will be mitigating the anticipated slowdown in the local construction growth from its proposed overseas expansion in the Asean region coupled with in-house projects by its holding company, Sunway Bhd.
Kimlun Corp Bhd’s net profit for the first quarter ended March 31, 2019 (1QFY19) rose 26% to RM15.93 million, compared with RM12.65 million a year ago, on higher revenue. Revenue rose 44.2% to RM318.56 million from RM220.93 million, supported by its construction and Manufacturing and Trading (M&T) divisions. The improvement in construction revenue by 24.4% from RM194.05 million to RM241.34 million was mainly attributable to higher
revenue contribution from the Pan Borneo Highway Sarawak project on higher percentage of completion.
Moving forward, the group’s performance is expected to be contributed by its current order book. As at March 31, 2019, the group has an estimated construction and manufacturing balance order book of about RM1.7 billion and RM300 million respectively, contributed by numerous construction and supply contracts. It said ongoing projects and sales orders comprise of contracts secured from, amongst others, Lebuhraya Borneo Utara Sdn Bhd, MMC Gamuda KVMRT (UGW) joint venture, UEM Sunrise Bhd Group, Sunway Iskandar Sdn Bhd, Hillcrest Gardens Sdn Bhd and China Railway First Group Co. Ltd. The group will continue to actively bid for new construction projects in Malaysia, specifically those in relation to affordable housing development, which continue to receive strong demand from the low- and middle-income groups.
UEM Sunrise Bhd’s net profit increased 19% to RM30.09 million in the first quarter ended March 31, 2019 (1QFY19) from RM25.29 million on account of strong revenue growth and gains from cost savings initiative. Revenue increased 45.7% to RM419.26 million from RM287.74 million in view of the recognition of ongoing local developments as well as the completion and settlement of the group’s developments in Melbourne, Australia - the majority of which is from Conservatory.
In a filing to Bursa Malaysia, UEM Sunrise said property development sales for the quarter was RM215.2 million. Total sales was 54% contributed by the Central region mainly from Symphony Hills, Residensi Astrea and Serene Heights Bangi, followed by 38% from Southern largely from the recently launched mid-market residences Aspira ParkHomes in Gerbang Nusajaya, Almas@Puteri Harbour and Denai Nusantara, while the remaining 8% was from Conservatory. To date, it has launched projects with a total gross development value of RM160.0 million.
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