Muhibbah bags second win of the year

KUCHING: Muhibbah Engineering Malaysia Bhd ( Muhibbah) has bagged its second win of the year with an RM584.4 mill ion contract from the Bintulu Port Authority.

The announcement of the win was made last Friday via a filing on Bursa Malaysia where the company detailed that the contract was received via a joint venture ( JV) entity – Muhibbah Viccan JV – where Muhibbah owns a 51 per cent stake.

The project is set to commence immediately and involves the design and construction of the wharf, jetty and other associated facilities at Bintulu Port’s second harbour basi n. Completion of the project is slated at the end of 2019.

According to Muhibbah, the contract win is expected to contribute positively to the earnings and net assets of the group for current and future financial years.

Assuming Prof it Before Tax ( PBT) margins of 10 per cent, the team over at Kenanga Investment Bank Bhd ( Kenanga Research) estimates the contract to contribute circa RM22.4 mill ion to the group’s bottom line over its contract period of approximately 30 months.

“This contract will bring Muhibbah’s outstanding order book to circa RM2.0 bi l l ion from circa RM1.7 billion which provides at least two years of visibility,” guided the research arm.

Furthermore, the win has also allowed Muhibbah to meet 50 per cent of the research arm’s f inancial year 2017 ( FY17) order book replenishment target of RM1.5 billion.