Pesona tipped for RM250mil contract


  • Business
  • Monday, 23 Mar 2015

PETALING JAYA: Mid-sized contactor and developer Pesona Metro Holdings Bhd is tipped to be the frontrunner for a contract worth RM250mil in the Klang Valley, sources said.

Sources said the final announcement for the mixed project should be out soon, without giving a definite timeline.

“The company is targeting to boost its order book to RM1bil from RM580mil since it expanded its capacity last year,” he said.

The contract would be the company’s second win this year.

In February, the company bagged a RM172.73mil contract for roadworks from Gua Musang in Kelantan to Relong in Pahang.

Works for the road project are expected to be over three years, starting March 17.

The firm is actively tendering for new jobs worth RM1bil.

The construction firm’s other projects include Port Klang bridge, the Election Commission building in Putrajaya, the Government Building Complex in Johor, a hostel for University Malaysia Perlis (UniMAP) and high-end service apartment, The Mews.

Besides construction, the company produces industrialised building system components.

It also manufactures polyurethane architecture moulding and decorative items, which are mainly exported to the European market.

For its financial year ended Dec 31, 2014 (FY14), revenue was RM267.41mil or 9.92% lower compared with RM296.89mil in FY13.

Net profit for the period was 30% down to RM8.22mil compared with RM11.72mil in the preceding year.

The lower profit last year was mainly due to the completion of several projects as well as a depreciation charges following the purchase of construction machinery and equipment.

Depreciation for the period jumped 68% to RM5.63mil from RM3.35mil in FY13.

Meanwhile, the company’s cash and cash equivalents were lower at RM43.17mil versus RM70.8mil a year earlier.

Earlier this year, chairman Datuk Lee Tuck Fook said the company wants higher recurring income to buffer its construction earnings.

One of the moves it made was the acquisition of SEP Resources (M) Sdn Bhd for RM29.15mil.

SEP Resources holds a 22-year concession for managing and maintaining the UniMAP building on top of constructing the hostel for RM129.8mil.

Late last year, the company rewarded its shareholders with a bonus issue of one warrant for every two shares held.

It declared a single-tier interim dividend of one sen, amounting to RM5.1mil, to shareholders. Its net asset per share stood at 17.4 sen as at Dec 31, 2014.

Managing director Wie Hock Beng and non-independent non-executive director Wie Hock Kiong are the largest shareholders, owning a combined stake of about 60% in the company.

The counter closed unchanged at 82 sen on Friday.

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