KUALA LUMPUR (Oct 28): Kumpulan Kitacon Bhd (KL:KITACON) has won an RM86.58 million contract from Earth Pavilion Sdn Bhd to build residential units at The Mines Resort City, Selangor.
Its subsidiary, Kitacon Sdn Bhd, will handle two phases of the project:
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Phase 3: 34 units of three-storey semi-detached and zero-lot houses
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Phase 4: 47 units of three-storey zero-lot and bungalow houses
The project will start on Nov 1 this year and is slated for completion within 24 months.
Kitacon said in a bourse filing the contract is expected to contribute positively to the group’s earnings and net assets per share for the financial year ending Dec 31, 2025 (FY2025) onwards until completion.
The construction group recorded a net profit of RM26.41 million for the first half ended June 30, 2025 (1HFY2025), up 9.9% from RM24.02 million a year earlier, driven by improved margins despite lower revenue.
Revenue fell 12.5% year-on-year to RM413.34 million from RM472.3 million, as several projects neared completion while newly secured ones were still in the early stages.
CGS International expects Kitacon’s earnings to strengthen in 2HFY2025 as township projects such as Bandar Bukit Raja and Elmina approach completion, supported by margin expansion and steady project delivery.
According to the research house, Kitacon’s tender book stood at RM913 million as of June 23, comprising 83% residential and 17% industrial projects.
It noted that the group had already secured RM375 million worth of new contracts, including an RM88 million residential project from GuocoLand Group.
At Tuesday's noon market break, shares of Kitacon settled half a sen or 0.68% lower at 72.5 sen, with a market capitalisation of RM362.7 million.