Zecon sees Kota Petra development in Kuching as growth driver

KUALA LUMPUR: Sarawak-based construction firm Zecon Bhd, which has an order book of RM3.6 billion to keep it busy for the next three to five years, is banking on its future development named Kota Petra to be a growth engine in the coming years.
The mixed development in Kuching is dubbed to be the group's largest property development by far, with a gross development value (GDV) of RM11 billion.
Kota Petra, which will sit on land spanning across 2,973 acres, has already been given an approval from the state planning authority.
However, Zecon could see a stretched balance sheet due to the construction of a specialist children's hospital at University Kebangsaan Malaysia for a total funding of RM744.4 million, under a private finance initiative.
Speaking to reporters at a press briefing here today, CEO Syed Muzakir Al Joofre said the group's gearing level is expected to increase three times from the current 1.3 times.
Zecon's debt for the hospital project alone will stand at RM600 million until next year.
Overall, Syed Muzakir said the group is hoping to recognise at least a 10% gross profit margin for each of its projects upon completion. Its other projects include Pan Borneo Highway (Phase 1), Hospital Petra Jaya and Vista Tunku (Phase 8).
At 4.40pm, Zecon's share price fell 1 sen or 1.3% to 74.5 sen on some 4.52 million shares done.