Kimlun bidding for local projects worth RM3 billion

KUALA LUMPUR: Construction company Kimlun Corp Bhd, which saw its net profit jump 21.1% in the first quarter ended March 31, 2016, is bidding for RM3 billion worth of projects locally.
Its CEO Sim Tian Liang said they include construction and infrastructure jobs such as the Pan Borneo Highway, Damansara-Shah Alam Elevated Expressway, Sungai Besi-Ulu Klang Elevated Expressway, as well as the Refinery and Petrochemical Integrated Development (Rapid) project.
“We have already prequalified for the Pan Borneo Highway. We have got one package, valued about RM1.46 billion, which we ventured into with Zecon (Bhd),” he told reporters after its AGM last Friday.
He said Kimlun’s outstanding order book stands at RM1.8 billion, which can last the group for two years.
Asked on its financial performance, Sim said he expects flat or slightly lower revenue growth in the group’s current financial year ending Dec 31, 2016, as some of its major projects are still at the beginning stage.
“We don’t expect a very big contributions from these projects,” he added, noting that about 90% of its revenue comes from its construction and manufacturing divisions, while the rest is from the property development segment.
The Johor-based company’s ongoing projects include a RM296.4 million serviced apartment contract for IOI Properties, RM230.7 million affordable apartments contract for UEM Sunrise Group and the RM105 million Gleneagle Medini Hospital for Pantai Hospital Johor Sdn Bhd.
For the first quarter ended March 31, 2016, Kimlun’s net profit grew 21.1% to RM17.10 million, from RM14.12 million in the previous corresponding quarter, on the back of higher gross profit.
Revenue, however, declined 27.1% to RM234.79 million, compared with RM322.16 million previously, mainly due to lower revenue from the construction and manufacturing divisions.