Tuju Setia's JV company bags RM318m construction job

• Tuju Setia said the contract is expected to positively impact the company’s earnings and net assets from the financial year ending Dec 31, 2024, until the contract’s completion.

KUALA LUMPUR (Oct 8): Tuju Setia Bhd (KL:TJSETIA), which is valued at RM66.5 million, said its joint venture (JV) company has secured a RM317.6 million contract to build a new block at Gleneagles Hospital in Jalan Ampang.

Tuju Setia–GPQ JV — an unincorporated JV between Tuju Setia's wholly owned unit Pembinaan Tuju Setia Sdn Bhd and GPQ Sdn Bhd, a unit of Terengganu Incorporated Sdn Bhd — was awarded the contract by Ampang 210 Sdn Bhd, according to the construction firm's exchange filing.

The JV will undertake the design and construction of Block C of the hospital, with a project duration of 37 months, slated to begin this month.

Tuju Setia said the contract is expected to positively impact the company’s earnings and net assets from the financial year ending Dec 31, 2024, until the contract’s completion.

The latest win marks Tuju Setia's third contract secured this year. In August, the company secured a RM247.95 million contract from Sime Darby Property Bhd (KL:SIMEPROP) to build two blocks of serviced apartments with a gross development value of RM597.2 million in USJ 7, Subang Jaya, Selangor.

Tuju Setia reported a net profit of RM1.84 million for the second quarter ended June 30, 2024, more than double the RM879,000 recorded a year earlier, despite a 20.9% drop in revenue to RM139.1 million from RM164.5 million.

The increase in profit was mainly due to higher profit margins from ongoing projects and a gain of RM1.89 million from the disposal of right-of-use assets.

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