KUALA LUMPUR (Oct 5): Construction group Vestland Bhd has bagged two design and build contracts worth RM116.1 million.

In a bourse filing, Vestland said its wholly owned subsidiary Vestland Resources Sdn Bhd has been awarded the said contracts.

The first contract is from Derrida (M) Sdn Bhd and comprises a design and build project for a school, quarters, hostel and related facilities located in Sabah, with a contract value of RM53 million.

The second contract is from Sg Besi Construction Sdn Bhd, with a value of RM63.1 million. The contract relates to a design and build project for two blocks of 13-storey apartments and related facilities located in Penang. 

The new contracts bring the group’s total job wins to-date for 2023 to RM783.7 million. Vestland's outstanding order book value stands at RM1.8 billion.

Its group managing director Datuk Liew Foo Heen said Vestland’s adoption of blue ocean strategy, by leveraging its expertise in design and build have paid off, as evident from the consistent revenue contribution of 50-60% from the design and build segment for the past quarters, providing a strong earnings visibility for the upcoming three and four years.

“Our team’s diligent effort in growing our group is evident in our first ever contract win in Penang, expanding our presence geographically up to the northern part of Peninsular Malaysia,” he added.  

Vestland debuted on Bursa Malaysia’s ACE Market on January 31, 2023 with an initial offering price of 33 sen.

On Thursday, the stock closed unchanged at 34.5 sen, giving it a market capitalisation of RM326 million.