KUALA LUMPUR (April 30): Construction and trading group Pesona Metro Holdings Bhd (KL:PESONA) is targeting RM500 million in new contract wins under its construction division for the financial year ending Dec 31, 2026 (FY2026).

The group, in its 2025 annual report filed with Bursa Malaysia, said it will continue to pursue opportunities across both public and private sector developments while exploring expansion into affordable residential projects in the Klang Valley to tap evolving market demand.

In FY2025, the group secured a RM666 million contract for the main building works of a commercial development in Bandar Sri Damansara, Selangor. The 30-month contract is scheduled for completion by March 2028.

As at end-2025, the division’s outstanding order book stood at RM2.3 billion, comprising eight ongoing projects that are expected to contribute to revenue in FY2026 and beyond.

These outstanding order books provide sustained revenue visibility and operational continuity as projects progress through their construction phases, it noted.

For FY2025, the construction division recorded revenue of RM483.1 million, up marginally from RM477.4 million a year earlier, as construction activities progressed steadily across its project portfolio.

The division’s profit before tax rose 26% to RM21.3 million in FY2025 from RM16.9 million, supported by improved project margins and more efficient execution.

Pesona Metro also operates a student hostel concession at Universiti Malaya Perlis through its 70%-owned SEP Resources (M) Sdn Bhd.

The student accommodation asset generates a stable monthly income of RM2.3 million, under concession until 2036.

Moving forward, it plans to expand the accommodation capacity to 6,000 students, from 4,000 currently.

On its property development division, its key project REN Residensi has recorded encouraging sales with an 80% take-up as at end-2025.

With a total gross development value of approximately RM810 million, REN Residensi is positioned as a major earnings driver for the group’s property segment in the future. Construction of the project reached 42.9% completion as at end-2025.

Pesona Metro diversified into the property business following the group's purchase of a 51% stake in Gaya Kuasa Sdn Bhd for RM40.8 million cash in 2024.

Pesona Metro’s share price has fallen 21% from its eight-year high of 45.5 sen in October last year, to 36 sen at Thursday's noon market break.

At 36 sen, the group is valued at RM250.2 million. The stock is trading at a trailing price-earnings ratio of 6.5 times, according to AskEdge data.