Kimlun gets RM215mil job from Hillcrest Gardens

Firm to build two blocks of condos and ancillary buildings

PETALING JAYA: Johor-based engineering and construction firm Kimlun Corp Bhd has clinched a RM214.76mil job from Hillcrest Gardens Sdn Bhd to build two blocks of condominiums and ancillary buildings in Puchong.

The company told the stock exchange yesterday that its unit Kimlun Sdn Bhd accepted the letter of award from the Puchong-based property developer for the proposed project.

Kimlun, which has a market value of RM690.4mil, said that construction work is slated for completion by June 2020. The company’s filings did not mention when works will begin for the project.

“The project is expected to contribute positively to the group’s earnings and net assets for the financial years during the contract period,” Kimlun said.

None of Kimlun’s directors and/or major shareholders of the company or persons connected with them have any direct or indirect interest in the contract.

Kimlun emerged as the first peninsula-based contractor to get a slice of the RM16bil Pan Borneo Highway project in Sarawak, winning a package of contracts worth RM1.46bil with its local partner Zecon Bhd, to build 73km of roads, 20 bridges and three flyovers.

This, according to a December 2016 report, was Kimlun’s single largest construction contract in its 40-year history.

For the second quarter ended June 30, 2017, Kimlun posted a 38.7% drop in net profit at RM14.7mil from RM24.12mil, a year ago, against a lower revenue of RM194.8mil from RM246.36mil.

The drop in revenue in its construction and manufacturing divisions had attributed to the lower revenue, while profit was down due to lower gross profit margin from the manufacturing segment.

The company’s construction and manufacturing order book balance as of the second quarter stood at about RM1.98bil and RM0.32bil, mainly contributed by numerous contruction and supply jobs.

According to Kimlun, the balance order book provided good earnings visibility and projected to keep the company busy for the next two years.

Kimlun’s profit after tax (PAT) grew at a compounded annual growth rate of 13.5% from financial year 2012 (FY12) to FY16, with FY16 achieving a record high PAT of RM81.92mil.

Kimlun shares closed unchanged at RM2.16 yesterday.