Astral Supreme bags RM105m Malacca housing contracts

PETALING JAYA: Astral Supreme Bhd, which saw a shift in its boardroom recently with the entry of Datuk Eddie Chai Woon Chet, has secured letters of award (LOAs) worth a total of RM105 million for housing projects in Malacca.
In a filing with Bursa Malaysia yesterday, the group said its wholly-owned subsidiary Astral Supreme Construction Sdn Bhd received the LOAs from Gemawan Bina Sdn Bhd (RM57 million) and Permata Rebana Sdn Bhd (RM48 million).
Astral Supreme Construction will undertake the sub-contract for design, build and associated works for the housing development projects and is expected to complete the works in two years by March 10, 2016.
"These projects are expected to contribute positively to the future consolidated earnings and enhance the net assets of Astral Supreme group for the financial years ending Dec 31, 2014 (FY14) and Dec 31, 2015.
"The contracts will have a positive effect on the earnings per share. Nevertheless, the contracts will not have material effect to the substantial shareholders' shareholdings of the company for FY14," it said, adding that the projects will be funded with internally generated funds and borrowings.
At a press conference last week, Chai said Astral Supreme Construction was looking to participate in a RM600 million government housing project known as Projek Perumahan Rakyat (People's Housing Programme or PPR), in a bid to turn around the loss-making group. He also said that the project would help the subsidiary company turnaround the whole group within a year.
The subsidiary company currently has one other potential project on its plate, namely, the joint venture (JV) with Zenith PMC Sdn Bhd to undertake the Penang undersea tunnel job. The JV agreement was signed in August last year to begin feasibility studies on the undersea tunnel job, of which Chai said the company needs more time to consider.
Chai, 36, who was appointed executive director last Wednesday, was redesignated as managing director last Friday while non-executive director Wong Kwai Wah was redesignated as executive director. Wong, 57, is also the executive director of Consortium Zenith BUCG Sdn Bhd.