Mudajaya wins RM558mil MRT Line 2 job

PETALING JAYA: Construction company Mudajaya Group Bhd has been awarded a contract to build a viaduct gateway and other associated works worth RM558.64mil for the Klang Valley Mass Rapid Transit (KVMRT) Line 2 project.

The contract was given to the company’s wholly owned subsidiary Mudajaya Corp Bhd by Mass Rapid Transit Corp Sdn Bhd. The project in question, Package 207, involves construction works from Universiti Putra Malaysia to Taman Pinggiran Putra in Putrajaya.

The project’s construction period will be 56 months from the date of the notice to proceed, said Mudajaya in a stock exchange filing.

It expects the project to contribute positively to the company’s earnings for the financial year ending 2017 onwards.

The company was also one of the subcontractors assigned to undertake construction works on the KVMRT Line 1 project.

Back in 2012, it was awarded an RM816.42mil contract for the construction and completion of the viaduct gateway and other associated works from Dataran Sunway Station to Section 17, Petaling Jaya.

More recently, it secured a letter of award from Consortium Zenith BUCG on Dec 2 to undertake the construction of package 2 of the Penang Major Roads and Third Link Project worth RM810mil.

The new KVMRT contract award will be a timely boost for Mudajaya’s prospects, as the company seeks to replenish its outstanding RM1.3bil orderbook.

On Nov 30, CIMB Research downgraded Mudajaya’s rating to “reduce” from “hold” due to a weaker outlook, with the company facing concerns over sustained earnings and delay risks.

The research house currently has a fair value of 77 sen on Mudajaya’s shares.

The counter closed unchanged at 85 sen on Monday on a low trading volume of 189,500 shares.