Eversendai bags three projects worth RM406mil
PETALING JAYA: Eversendai Corp Bhd has secured three contracts worth RM406mil to undertake structural projects in Singapore, India and Qatar.
The engineering and construction services company said the project in Singapore was awarded by Sato Kogyo (S) Pte Ltd and it involved building of a new hi-tech data processing and computing facility.
The project in India was awarded by Larsen & Toubro Limited, Chennai and it involved the structural steel diagrid and floor beams for the APCRDA office building towers at Amarawati, Vijayawada, Andhra Pradesh.
Eversendai said it also bagged a contract from AG Middle East, Qatar to undertake structural steel works for the Lusail Expressway Al Wahda Arch.
“The projects are expected to contribute positively to the earnings of the Eversendai group for FY2019 and FY2020,” it said in a filing to the stock exchange.
To date, its core business tender book stands at RM10bil with approximately RM2.5bil order book to keep Eversendai busy going forward.
TA Research in a report said that assuming a net margin of 4%, these projects are expected to contribute RM16.2mil of net profit or earnings per share of 2.1 sen throughout the construction period.
It said it maintains its FY18 to FY20 earnings forecasts as the job wins are within our FY19 order book replenishment assumption of RM1.6bil.
“Maintain our sell call on Eversendai with an unchanged target price of RM0.605, based on unchanged seven times CY19 earnings. Net gearing level remains a concern at 1.05 times as of end-September 2018,” it said in a report yesterday.