Gabungan AQRS bags RM508mil SUKE subcontract

The Peak, a mixed development project in Johor Bahru by Gabungan AQRS

KUALA LUMPUR: Gabungan AQRS Bhd has bagged a RM508.22mil subncontract to complete the bridge structure works for the Sungai Besi-Ulu Kelang Elevated Expressway (SUKE) from Syarikat Muhibah Perniagaan dan Pembinaan Sdn Bhd (SMPP).

In a filing with Bursa Malaysia, the construction and property development firm said the sub-contract works would comply with the terms and conditions in the contract entered into between SMPP and highway concessionaire Projek Lintasan Kota Holdings Sdn Bhd’s (Prolintas) unit, Turnpike Synergy Sdn Bhd.

The SUKE works awarded to Gabungan AQRS’s unit Gabungan Strategik Sdn Bhd will start on Aug 29. The job is expected to be completed by Dec 28, 2018.

Gabungan AQRS said the sub-contract was expected to contribute positively to the group’s future earnings, net assets per share and gearing for the financial years ending Dec 31, 2016 to 2018. 

Gabungan AQRS was previously SMPP’s subcontractor under the Klang Valley My Rapid Transit (Sungai Buloh-Kajang stretch) project. That job, clinched in 2012 and scheduled for completion in February 2016, was worth RM303.49mil.

In a separate filing with the exchange, Gabungan AQRS said its earnings increased 15.4% year-on-year to RM6.27mil in the second quarter ended June 30, on 11% higher revenue of RM95.33mil. 

The construction segment swung to a pre-tax loss of RM130,000 from a pre-tax profit of RM790,000 previously. The company said in the quarter under review, the construction work on a few of the projects had decreased as they approached completion stage.

On the other hand, the property development segment’s pre-tax profit jumped 80.3% to RM17.53mil, mainly due to the sale of a piece of land as well as contribution from ongoing projects.

On its prospects for the year, Gabungan AQRS said it renained confident that with its enhanced construction order book and pipeline property development projects, it would be able to deliver satisfactory performance this year.

It said the group would soon receive a letter of award from the Pahang state government for the proposed development of Pusat Pentadbiran Sultan Ahmad Shah (PPSAS) in Kuantan.

The group has also been pre-qualified and shortlisted to participate in the tender for the Bandar Utama–Klang Light Rail Transit (LRT) Line 3. Gabungan AQRS anticipates that tender for LRT Line 3 will be called in the next quarter.

Gabungan AQRS shares shed 3 sen to close at RM1.11 on Thursday.