KUALA LUMPUR (April 29): Gadang Holdings Bhd has secured subcontract works valued at RM90.4 million for Central Spine Road, Pakej 2.

In a bourse filing on Friday (April 29), Gadang said its wholly-owned Gadang Engineering (M) Bhd secured the contract from Binary Vista Sdn Bhd to undertake pavement and road furniture works for the new highway.

The subcontract is for a duration of 24 months and shall be completed by the second quarter of 2024, the filing said.

On financial impact, Gadang said the subcontract is expected to contribute positively to the earnings and net assets of the group for its financial year ending May 31, 2022 (FY22) and the duration of the subcontract.

The Central Spine Road, Pakej 2 stretches 59km in length from the Sungai Lakit Bridge to Gua Musang in Kelantan, and is part of the infrastructure project under the 12th Malaysia Plan (12MP), according to the Economic Planning Unit (EPU).

At Friday’s market close, Gadang dipped half sen or 1.19% to close at 41.5 sen, valuing the construction group at RM302.15 million. Year-to-date, the construction group has appreciated by five sen or 13.7% from 36.5 sen.