TCS bags RM120m contract for service condo project in PJ

• “We are pleased to be selected to participate in this project named Helix2 by award-winning developer Eupe PJ South Development Sdn Bhd, a subsidiary of Eupe Corporation Bhd.”

KUALA LUMPUR (Nov 30): TCS Group Holdings Bhd announced its wholly owned subsidiary TCS Construction Sdn Bhd has bagged a RM119.61 million contract from Eupe PJ South Development Sdn Bhd for the construction and completion of main building works for a service condominium project known as Helix2.

“We are pleased to be selected to participate in this project named Helix2 by award-winning developer Eupe PJ South Development Sdn Bhd, a subsidiary of Eupe Corporation Bhd,” according to TCS managing director Datuk Tee Chai Seng in a press statement on Wednesday (Nov 30).

“Given our experience and long track record in building construction, we are confident we will deliver the job within the stipulated time frame.

“The contract will boost our outstanding order book and give us healthy earnings visibility for the coming financial years,” he said.

Meanwhile, the group reported a net profit of RM85,000 in the third quarter ended Sept 30, 2022 (3QFY2022), from RM2.12 million a year ago. It said profits were eroded by raw material costs arising from disruptions in the building materials supply chain brought upon by the Covid-19 pandemic, and less than optimal profit margin.

In a Bursa Malaysia filing, TCS said 3QFY2022 revenue increased to RM69.4 million from RM48.3 million a year prior.

The higher revenue was due to higher progress billing from its ongoing projects and lower contribution owing to disruption in operations from 3QFY2021.

Revenue for the nine months ended Sept 30, 2022 (9MFY2022) has also increased to RM176.7 million from RM149.2 million in the preceding year's corresponding period.

The group also reported a net loss of RM3.7 million in 9MFY2022 from a net profit of RM7.1 million in 9MFY2021.

At market close, TCS’s share price rose to one sen or 7.32% to 22 sen, with a market capitalisation of RM83.85 million.