WCT bidding for RM10b projects
Company eyeing major contracts from projects such as Tun Razak Exchange, LRT3, MRT2, Pan-Borneo Highway and Kuala Lumpur-Singapore high-speed rail
CONSTRUCTION giant WCT Holdings Bhd is in the process of bidding for projects worth RM10 billion, 90 per cent of which is located in the Klang Valley.
The company has several major contract targets for this year, notably the Tun Razak Exchange infrastructure and buildings, the Light Rail Transit Line 3 (LRT3), the Mass Rapid Transit Line 2 (MRT2), Pan-Borneo Highway and the Kuala Lumpur-Singapore high speed rail.
WCT is also actively biding for government building and hospital jobs, as well as civil works for Petroliam Nasional Bhd’s Refinery and Petrochemical Integrated Development, the southern double track, the East Coast Rail Line, Bandar Malaysia, Kwasa Damansara Land and the Kota Kinabalu water supply scheme.
“To date, the group’s outstanding order book remains healthy at RM4.8 billion while unbilled sales from its property development business stood at RM487 million as at March 31.
“This year we have secured a RM186 million contract to undertake and complete Phase 1 of the Johan Setia depot and associated works for the LRT 3 from Bandar Utama to Johan Setia,” group managing director Datuk Lee Tuck Fook told NST Business yesterday.
WCT is also expecting to wrap up its real estate investment trust (REIT) plans by the yearend.
“The company is in the midst of talks with investment bankers and authorities,” he said after the company’s annual general meeting, here, yesterday.
Asked whether he would be on the REIT’s management team, Lee said no decision had been made yet on the matter.
WCT plans to set up a REIT with three of its assets — Paradigm in Kelana Jaya, AEON BBT and Premiere Hotel — with a market value of RM1.1 billion.
However, Lee said WCT would be adopting a more cautious approach by focusing on its ongoing projects and aimed to achieve a sales target of RM500 million in 18 months.
With continued government support for strategic infrastructure development and spending, the company expects to secure more civil and infrastructure-related contracts this year.
WCT recorded a 276 per cent surge in net profit to RM33.1 million for the first quarter ended March 31 this year from RM8.8 million in the same quarter of last year.
The improvement was attributed to the projects undertaken by its construction division.
“Our property investment division is also expected to contribute positively to the group’s earnings and we are excited about the prospects of the 1.3 million sq ft Paradigm Mall Johor Baru as well as New World Petaling Jaya Hotel which is slated to open in the last quarter of this year,” he added.
WCT has recently undertaken a number of corporate exercises in line with its degearing plan, such as the sale and leaseback of The Ascent office tower to the Employees Provident Fund for RM347 million and the private placement of 100.5 million new ordinary shares to raise about RM178 million for repayment of bank borrowings and to finance working capital requirements.