KUALA LUMPUR: Gadang Holdings Bhd said it is currently bidding for RM5.2 billion worth of projects, including several packages of the mass rapid transit 2 (MRT2) project and the new light rail transit 3 (LRT3), to replenish its order book.
“For financial year 2017 (FY17), we are still positive in terms of our financials,” said Gadang group chief financial officer Kok Pei Ling. “As you know, the construction sector is still good with all the contracts and awards being rolled out. Hopefully, we can retain last year’s performance and do better, if we can secure more contracts.”
“Currently, our tender book is about RM5.2 billion, but that figure does not include future projects that we foresee will be called for tenders later on,” she told reporters after the group’s annual general meeting yesterday.
As at the end of the first quarter ended Aug 31, 2016, Gadang’s order book stood at RM603.7 million.
The group’s construction division managing director, Khew Check Kiet, said the project Gadang is currently tendering for include several packages for MRT2, namely package V204, for the portion near Desa Waterpark, and V207 in Universiti Putra Malaysia, Serdang.
He added that the group is also bidding for package V206 and had just received an invitation to tender for package V205.
“MRT projects are usually quite huge; they can easily be worth more than RM500 million. We expect package V204 to be announced sometime this month. The tender for package V207 just closed, so it would take about three months to be evaluated.
“We are confident of securing at least one,” he said.
Khew added that Gadang was also shortlisted for LRT3, with tenders expected to be called sometime in the first quarter of 2017. However, packages for the RM9 billion line have not been announced yet, he said.
The group is also bidding for the Cyberjaya hospital project and is expecting two more packages to be announced for the West Coast Expressway. It is also eyeing contracts for the RM55 billion East Coast Rail Line project, said Khew.
On the other hand, Khew said the group was not successful in securing contracts for the Sungai Besi-Ulu Kelang and Damansara-Shah Alam elevated expressway projects, which it was eyeing earlier this year.
Meanwhile, on the property development side, Gadang’s property development division managing director, Datuk Ling Hok Hing, said the group had set a sales target of about RM200 million for FY17, with planned launches valued at about RM500 million in gross development value (GDV).
“For this year, we will be focusing on smaller project launches. In Cyberjaya, we have phase 2 of PR1MA homes with [a] GDV of RM157.5 million and gated and guarded terrace homes with [a] GDV of RM173.6 million.
“We are also looking at launching the projects in Semenyih, comprising terrace units and town houses, together with Rumah Selangorku homes. These have a combined GDV of RM120 million,” he said.
On the award by Kwasa Land Sdn Bhd of the development rights for plot R3-1, Ling said the group will be developing a fully residential project on the tract, with a GDV of RM700 million.
“We have received the letter of award and we are expected to sign the development rights agreement sometime in January next year. We have a one-year period to procure the development orders and building plans, and the project is expected to take off in 2018,” he said.