An artist’s impression of Tamarind Square, one of the projects under Vivacom’s purview.
KUCHING: Vivocom Intl Holdings Bhd’s (Vivocom) subsidiary, Neata Aluminium (M) Sdn Bhd (Neata), was awarded RM37.5 million worth of contracts yesterday, with the latest projects being Third Avenue Cyberjaya for an amount of RM22.5 million, and Kemensah Development for an amount of RM15 million for the supply and installation of aluminium works.
This announcement to Bursa Malaysia yesterday is the latest in a series of solid wins for Neata, a subsidiary of Vivocom, a leading conglomerate in the sectors of construction, telecommunications and now manufacturing.
“Since the acquisition by Vivocom last year, our business has grown by leaps and bounds, in particular our aluminium manufacturing and installation business.
“We have secured almost RM80 million worth of contracts during the past nine months alone, all from reputable developers with high end prestigious projects such as Third Avenue, Eclipse Residence and KL Gateway, to name a few,” said Neata’s business development director Albert Chia.
“We are also presently in final negotiation to secure another two projects worth up to RM30 million, and hopefully the award will be made by the end of April 2016.”
A pioneer in manufacturing aluminium windows, doors and façade systems, Neata has seen exponential growth in the last two years, emerging as one of Malaysia’s most respected players in the field since its establishment in 1989.
“Neata has built a reputation for supplying quality products to some of Malaysia’s most prestigious property and construction projects,” said Vivocom executive director Choo Seng Choon in a statement yesterday.
“This latest win is certainly a ‘bonus’ for the Vivocom Group, and will further strengthen our fundamentals.”
Setting the standard in quality, technology and design, Neata is synonymous with outstanding aluminium doors and windows from various parts of the world for those who value distinction and integrity.
Neata’s affiliation with Schüco, FAPIM, Master SRL, Omec and the Naco only serves to reaffirm its reputation of being a supplier of ‘best of breed’ quality products.
Neata is also currently in the process of expanding its production output at its plant in Semenyih to cater for increasing orders from its huge client base.
With this latest development, shareholders of Vivocom should be happy to note that all of its three core divisions are now firing strongly on all fronts.
On the construction front, Vivocom has secured projects amounting to RM1.198 billion to date, including RM594 million from CRCC Malaysia.
Vivocom has a strategic relationship with CRCC Malaysia, a subsidiary of China’s construction behemoth China Railway Construction Corporation Ltd, and is their in-house contractor as well as their Project Delivery Partner in Malaysia.
Its recently awarded projects from CRCC Malaysia include RM116 million project in Gombak and two projects totaling RM230 million related to the 1Gateway project in Klang and Pavilion Hilltop in Mont Kiara, Kuala Lumpur.
In addition, the group has also secured potentially up to RM470 million with Coneff Corporation for developments within Bandar Tasik Selatan area.
These projects together with the company’s current order book are expected to give a strong earnings visibility until end-2017 and beyond. Vivocom construction arm currently has a project pipeline estimated at RM2.5 billion, which is expected to grow further in the next six to nine months.
On the telecommunications front, the group has secured RM29 million contracts to build towers in Sabah, Negeri Sembilan and Perak.
Since September 2015 Vivocom’s share price has surged from eight sen to the present 27 sen, making it the largest company in the ACE market of Bursa Malaysia. The company’s shares has consistently been traded in the Top 10 volume leaders in KLCI, showing remarkable volume and liquidity sustained over the last six months, a feature rarely seen amongst ACE companies of Malaysia.
The company has also attracted good analyst coverage by research houses in Malaysia, with MIDF Research giving it a target price of 59 sen per share while CIMB values the company at 67 sen per share.
This represents upsides of 120 per cent and 150 per cent, respectively, from the company’s currently undervalued price of 27 sen per share as at 31 March 2016.