Ekovest tendering for projects worth RM6bil

KUALA LUMPUR: The construction sector is set to remain the growth driver for Ekovest Bhd with a RM6bil tender book.

Managing director Tan Sri Lim Keng Cheng said between RM3bil and RM4bil worth of the projects tendered would originate from Sabah and Sarawak.

“We are eligible to bid for five infrastructure projects, same like other contractors, and we have gone through the pre-qualification process (in Sabah and Sarawak).

“We are directly tendering for these projects through the state governments instead of having local partners,” he said after the company’s AGM.

According to Ekovest’s annual report, the construction sector contributed about 60% of the company’s revenue, followed by property development (26%) and toll operations (14%).

“In the long run, we aim to see a revenue mix of 40% from construction and 30% each from property development and toll operations,” Lim said.

For the financial year ended June 30, 2018, Ekovest delivered about RM8bil worth of construction projects across Malaysia.

Ekovest’s construction order book stood at around RM3bil, which provides the company with earning visibility for the next three years.

Lim said the company is currently focusing on the construction sector while the property sector would act as a buffer or balancing tool when the construction projects are depleted.

“We would like to wait until the property market recovers and so far, we are quite busy with the construction projects in hand,” he said, adding that Ekovest had no plan to develop its 17.40 hectare land bank.

However, Lim said the company planned to look into the real estate investment trust business within four to five years.

On EkoCheras Shopping Mall, the latest project under its property division which had reached 85% occupancy, Lim said it is expected to be launched next month.

“At first, I was sceptical with the success rate of EkoCheras, as oversupply of commercial property remained an issue in the Klang Valley but looking at the mall, I believe this is not going to be an issue,” he added.

The diversified company is expected to release its financial results for first quarter ended Sept 30, 2018 on Friday. — Bernama