KUCHING: The recently secured contract for the construction of an 18-storey commercial/office building in Petra Jaya by Hock Seng Lee Bhd (HSL) will boost the group’s new contract wins to RM358 million to date for the financial year 2013 (FY13).
This figure for the first half of the year was on track to equal, if not better, the figure of RM525 million seen in new contract wins for FY12, highlighted HSL corporate affairs manager Sonja Gan in an exclusive with The Borneo Post.
To note, the group secured the contract for Petra Jaya commercial/office building was worth RM228 million.
“The job is the fourth key job HSL has secured in FY13, boosting our outstanding orderbook by 20 per cent to RM1.2 billion from RM1 billion,” Gan explained.
AmResearch Sdn Bhd (AmResearch) in a research note further elaborated that the project is slated to be a new Islamic centre. It added, the duration of the contract is expected to be for 30 months and will be due to be completed by the first quarter of 2016 (1Q16).
Meanwhile, RHB Research Institute Sdn Bhd (RHB Research) in a separate note said that HSL is also gearing up for the second phase of its Kuching Sewerage Project.
“HSL has guided new contract wins in FY13 that will surpass RM525m it achieved in FY12 and should remain strong beyond FY13 underpinned by infrastructure works arising from three main initiatives, namely Sarawak Corridor of Renewable Energy (SCORE) roads, water supply and port, Urbanisation (flood mitigation, waste management and traffic diversion) and Rural development (roads, water supply and housing),” it highlighted.
HSL, RHB Research pointed out, has thus far secured new contracts worth a total of RM130 million in FY13, comprising two road packages and a drainage diversion package in Samalaju Industrial Park, Bintulu, Sarawak.
Both research houses retained positive views on prospects of HSL on the back of the positive outcome of the latest contract.
AmResearch derived HSL’s fair value at RM2.48 per share, based on sum-of-parts, while RHB Research derived HSL’s fair value at fair value at RM2.01 per share, based on 12-fold FY14 earnings per share, in line with its one-year forward target price earning ratio for the construction sector of 10 to 16 fold.