Eversendai bags three projects worth RM406mil

The Star Malaysia - StarBiz - - News -

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.

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