Ikhmas Jaya wins RM188.6 million contract from Bukit Bintang
KUCHING: Ikhmas Jaya Group Bhd (Ikhmas Jaya) has won an RM188.6 million substructure package of Bukit Bintang City Centre from BBCC Development Sdn Bhd.
In a filing from Bursa Malaysia, the construction group announced that the BBCC package entailed a variety of works ranging from earthworks, piling, diaphragm wall and reinforced concrete works for Parcel two and three of BBCC’s substructure package B1.
The duration of the project is estimated to be 24 months and will commence on the June 8 2017.
In a company report by AmInvestment Bank Bhd (AmInvestment Bank), the bank noted that the BBCC contract win had boosted Ikhmas’ year to date (YTD) job wins to RM333.3 million and its outstanding orderbook to RM881.6 million.
Based on the bank’s forecasts of an order book replenishment target of RM500 million annually in FY17-19F which is consistent with Ikhmas’ job wins of RM485 million in FY16, the group is poised to meet expectations especially from support of its piling and foundation segment.
“We continue to like Ikhmas as it is a good proxy to the booming piling and foundations segment underpinned by current mega infrastructure projects such as the MRT2, Pan Borneo Highway, SUKE and DASH, as well as those that are getting off the ground over the short to medium-term such as the LRT3, ECRL and KL-Singapore HSR,” explained the bank.
With a sizeable order backlog to give it earnings visibility for the next two years, the bank is maintain its forecasts on the group’s stock with a ‘Buy’ call and Future Value of RM0.80 per share.