KUCHING: Home-grown construction, infrastructure, toll concession and property development player, Zecon Bhd (Zecon) will consider making its property development division to be its next core revenue contributor within the next five years.
ON-GOING PROJECT: Photo shows a dam from Zecon’s Triang project in Negeri Sembilan. The dam is scheduled to be completed in February next year.
“The ratio of revenue contribution for the construction and property development division is expected to be equal in five years time,” said Zecon’s general manager of corporate communications, Brandon Goh in an online note yesterday.
According to the group’s notes to interim financial report for the period ended Dec 31, 2010, the construction division remained its primary revenue contributor with a total revenue of RM256.45 million.
This was followed by the property development division with RM22.03 million, toll concession with RM11.06 million and others with RM704,000.
“As of Dec 31, 2010, the construction division contributed 81 per cent of the revenue, followed by the property development division with 13 per cent and the toll concession with six per cent,” Goh said.
In its filing to Bursa Malaysia on Feb 28, 2011, Zecon noted that during the quarter under review, the group recorded total revenue of RM36.6 million as compared with RM42.3 million reported in the corresponding quarter of the preceding year.
The group pointed out that the main contributors to this quarter’s revenue were the Triang Water Scheme under packages one, two and five and the construction of the Unimas Faculty of Medicine and Health Science.
Zecon stated that in adopting FRS139, significant impairment losses amounting to RM5.909 million had been recognised during the year.
As for this quarter, the group recorded a profit before tax of RM6.663 million against a profit before
tax of RM19.373 million in the corresponding quarter of the preceding year, the group stated.
Zecon stated that the positive effect from the implementation of the current on-going projects coupled with the expected finalisation of the negotiation involving few public and private projects would augur favourably for the group.
The group highlighted that its focus this year would be on the scheduled works related to the revised route Matang road, Sg Triang Water Scheme, Faculty of Medical and Health Science and Kapit Water Treatment Plant projects as well as the Vista Tunku mixed development with a total value of RM505 million.
Besides that, Zecon also highlighted that the toll concession business was still expected to be a steady and growing contributor to the group based on the increasing traffic flow.
In addition, the group said the contribution from the oil and gas sector was also steadily growing based on last year’s achievements where it had successfully completed a piling job in Bintulu.
Thereafter, Zecon also managed to secure two additional projects, namely the building works of four compressor stations and four ancillary buildings in Bintulu as well as the design, construction, completion and commissioning of a proposed Autoblast and Priming Workshop and Associated Works in Pasir Gudang, Johor totalling RM37.50 million.
The group’s property sector was also expected to continue to contribute positively.