Quick Take: Advancecon rises on ECRL subcontract job

KUALA LUMPUR: Shares in Advancecon Holdings Bhd climbed in early trade Friday after securing a RM16.97mil East Coast Rail Link (ECRL) project.

The counter added 2.86%, or one sen to 36 sen at 9.20am. Year-to-date, it has fallen over 5%. It is currently trading at a PE ratio of abut 27 times.

Advancecon said its wholly-owned subsidiary Advancecon Infra Sdn Bhd (AISB) had accepted the letter of acceptance from China Communications Construction (ECRL) Sdn Bhd for the appointment as the subcontractor for the proposed construction and completion of ground treatment works of Section 4 for the rail project.

The contract period will commence from Oct 15, 2021, until March 25, 2022.

Advancecon said the group intends to fund the contract via internally generated funds and external borrowings.