Jiankun to diversify into construction with RM32.9m factory construction job
March 20, 2015 : 7:08 PM MYT
KUALA LUMPUR (Mar 20): Property developer Jiankun International Bhd (Jiankun) is planning to diversify into the construction business after receiving a proposed award to construct 28 units of factories in Sepang for RM32.9 million.
Jiankun (fundamental: 0.6; valuation: 0.6), in a filing with Bursa Malaysia today, said its wholly-owned subsidiary Nagamas Venture Sdn Bhd received a letter of award from Juara Gred Development Sdn Bhd to construct the main building and external works of 28 units of three-storey semi-detached factories for a provisional sum of RM32.9 million.
Hence, Jiankun is proposing to undertake a proposed diversification of its business to include construction.
“The proposed award provides a business opportunity for Jiankun to diversify into the construction business. The proposed award will also potentially provide Jiankun group with an additional stream of revenue and will also increase the group’s earnings base,” said the company.
Based on the provision contract sum, Jiankun anticipates that the group’s venture into the construction business may contribute 25% or more to its net profit in the future.
“The board also anticipates that construction will be a major contributor to the group’s future earnings,” it added.
The provisional sum is subject to quantities remeasurement based on the as-built drawings and final account upon completion of the project, it added. Work on the project is to commence on Mar 24, 2015 and should last 18 months.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
March 20, 2015 : 7:08 PM MYT
KUALA LUMPUR (Mar 20): Property developer Jiankun International Bhd (Jiankun) is planning to diversify into the construction business after receiving a proposed award to construct 28 units of factories in Sepang for RM32.9 million.
Jiankun (fundamental: 0.6; valuation: 0.6), in a filing with Bursa Malaysia today, said its wholly-owned subsidiary Nagamas Venture Sdn Bhd received a letter of award from Juara Gred Development Sdn Bhd to construct the main building and external works of 28 units of three-storey semi-detached factories for a provisional sum of RM32.9 million.
Hence, Jiankun is proposing to undertake a proposed diversification of its business to include construction.
“The proposed award provides a business opportunity for Jiankun to diversify into the construction business. The proposed award will also potentially provide Jiankun group with an additional stream of revenue and will also increase the group’s earnings base,” said the company.
Based on the provision contract sum, Jiankun anticipates that the group’s venture into the construction business may contribute 25% or more to its net profit in the future.
“The board also anticipates that construction will be a major contributor to the group’s future earnings,” it added.
The provisional sum is subject to quantities remeasurement based on the as-built drawings and final account upon completion of the project, it added. Work on the project is to commence on Mar 24, 2015 and should last 18 months.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
