KUALA LUMPUR (Sept 18): Kimlun Corp Bhd (KL:KIMLUN) has secured a RM128.13 million contract to build a residential development in Johor Bahru, the fifth contract win it has announced this year.

The contract was awarded to the engineering and construction services provider's wholly-owned Kimlun Sdn Bhd by Tanah Sutera Development Sdn Bhd, its bourse filing on Wednesday showed. The contract comprises two sections, Kimlun said. 

The first section, valued at RM57.86 million, is expected to be completed by the third quarter of 2026. The second section, worth RM70.27 million, is slated for completion within 21 months from its commencement date.

For its second quarter ended June 30, 2024 (2QFY2024), Kimlun reported a big jump in net profit to RM31.29 million from RM100,000 in the same period last year, driven by a 39.2% rise in revenue to RM282.28 million from RM202.79 million.

The company attributed the improved performance to higher external sales in its construction division.

This latest contract win follows a RM234.27 million job it obtained from Saujana Development Sdn Bhd in June, for a high-rise residential development in Selangor. Before that, it secured two projects in Johor Bahru — a RM143.01 million contract from a subsidiary of Eco World Development Group Bhd (KL:ECOWLD) to build a serviced apartment and a RM150 million contract from Astaka Development Sdn Bhd to build a serviced residence.

Kimlun announced its first contract win this year in January, when it clinched a RM133.6 million project from Sunway Parkview Sdn Bhd, a unit of Sunway Bhd (KL:SUNWAY).

Kimlun’s shares closed two sen or 1.44% lower to RM1.37 on Wednesday, giving the group a market capitalisation of RM484.11 million. Year to date, the counter has risen 75.64%.