Fututech targets at least RM500mil-RM600mil new jobs in FY16

Corporate exercise: (from left) Fututech executive director Datin Toh Siew Chuon, Tee Eng Ho and director Tee Eng Seng at the EGM.

KUALA LUMPUR: Construction firm Fututech Bhd is tendering RM1.17bil worth of jobs for financial year 2016 (FY16) and is targeting to secure a minimum of RM500mil to RM600mil.

Of the tendered jobs, 80% were from the company’s three main clients – Eastern & Oriental Bhd, Eco World Group Development Bhd and SP Setia Bhd.

Executive chairman Datuk Tee Eng Ho said the company’s current order book totalled RM2.7bil, which would be able to support earnings until 2018.

The order book largely derives from the combined contract of RM2.62bil from Kerjaya Prospek (M) Sdn Bhd and Permatang Bakti Sdn Bhd, companies that Fututech proposed to acquire.

“We are confident that we will be able to secure at least RM500mil to RM600mil worth of construction jobs. This is backed by our achievement of past records,” Tee said after Fututech EGM.

At the EGM, shareholders had unanimously voted in favour of the acquisitions of the entire equity interest in Kerjaya Prospek and Permatang Bakti for a total purchase consideration of RM458mil.

The acquisitions, likely to be completed by the end of this week, will result in a double-digit growth in Fututech’s profit after tax for FY16.

Following the acquisitions, Fututech will be renamed Kerjaya Prospek Group Bhd beginning Tuesday.

Moving forward, the company aims to complete its property development and focus on construction jobs.

It has two property projects, Vista Residences in Gohtong Jaya, Genting Highlands, as well as Monterez Golf and Country Club in Shah Alam. To date, Vista Residences has garnered a take-up rate of about 50% during a soft launch last week.

Tee said its construction works were evenly distributed across Johor Bahru, Kuala Lumpur and Penang.

“Being well equipped with resources and a professional team, we have the capabilities to venture into construction works overseas.

“However, it will depend on the property development decisions by our three main clients,” he said, adding that the company was looking to expand its piling business.

Fututech had in December 2015 secured a piling job worth RM15.7mil. Total contributions from piling works for 2015 was close to RM30mil.

The purchase consideration of Kerjaya Prospek of RM438mil will be satisfied by a combination of cash, issuance of Fututech shares at an issue price of RM1.16 per share, as well as issuance of redeemable convertible preference shares (RCPS) of 50 sen each in Fututech at an issue price of RM1.16 per RCPS. Meanwhile, the acquisition of Permatang Bakti would be satisfied with a cash consideration of RM20mil.