Fajarbaru Builder bags RM252m construction job in Johor Bahru from WCT

• This is not the first time Fajarbaru has won a contract from WCT. In March last year, Fajarbaru secured a RM310.54 million construction contract from Kekal Kirana Sdn Bhd, an indirect subsidiary of WCT. The project, which commenced on March 15, 2023, is slated for completion by Feb 14, 2026.

KUALA LUMPUR (April 24): Construction outfit Fajarbaru Builder Group Bhd has bagged a RM252.26 million contract from WCT Holdings Bhd to undertake Phase 1 of a two-phase development of two blocks of serviced apartments in Johor Bahru.

In a filing with Bursa Malaysia on Wednesday, Fajarbaru said its wholly owned subsidiary Fajarbaru Builder Sdn Bhd has accepted a letter of award from WCT Construction Sdn Bhd, an indirect subsidiary of WCT, for the proposed job.

The construction works for Phase 1 comprise eight towers housing 2,048 units and 69 units of commercial lots.

The contract period for Phase 1 is 36 months, commencing on May 6 this year and to be completed on May 5, 2027.

“Phase 2 works, comprising four serviced apartment towers, is subject to the confirmation of award by WCT Construction within a 12-month period from the date of commencement of the contract. The company will make the relevant announcement as and when there is confirmation of award,” Fajarbaru added.

Fajarbaru said the latest contract is expected to contribute positively to the group’s earnings and net assets from the financial year ending June 30, 2024 (FY2024) onwards.

This is not the first time Fajarbaru has won a contract from WCT. In March last year, Fajarbaru secured a RM310.54 million construction contract from Kekal Kirana Sdn Bhd, an indirect subsidiary of WCT. The project, which commenced on March 15, 2023, is slated for completion by Feb 14, 2026.

In a separate statement, Fajarbaru group executive chairman Datuk Seri Chan Kong Choy said the contract win brings its total construction orderbook to RM1.2 billion.

“This job is one of Fajarbaru’s biggest contract wins year-to-date and brings our orderbook of ongoing projects to over a billion ringgit. Securing this job reaffirms our position as a trusted construction partner for major real estate developers such as WCT,” he added.

For the second financial quarter ended Dec 31, 2023 (2QFY2024), Fajarbaru posted a net profit of RM19.19 million, against a net loss of RM1.78 million a year earlier. Revenue for the quarter rose 87% to RM126.79 million, from RM67.87 million in 2QFY2023, mainly contributed by its property development, as well as logging and timber trading segments.

Fajarbaru’s shares closed up half a sen or 1.52% to 33.5 sen on Wednesday, giving it a market capitalisation of RM248.44 million.

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