KUALA LUMPUR (Oct 15): Vestland Bhd (KL:VLB) has secured a contract worth RM225.07 million to undertake river widening and related flood mitigation works in Kelantan.
The job, under the Integrated River Basin Development project, was awarded on Thursday by Pembinaan Rizen Sdn Bhd, said Vestland in a bourse filing.
The filing did not state the specific location of the works being undertaken from Oct 28.
Vestland said the contract is expected to contribute positively to the earnings and net assets of the construction company over the two-year duration.
The Integrated River Basin Development project is a flood mitigation initiative managed by the Department of Irrigation and Drainage. It aims to provide long-term flood protection, improve river channel capacity, and manage water resources in major flood-prone river basins like Sungai Golok (Kelantan), Sungai Kelantan, Sungai Kemaman (Terengganu), and Sungai Sarawak.
The contract comes after Vestland secured three other major construction contracts totalling RM781.3 million last month that raised the group's order book to RM2 billion.
The three contracts comprise a high-profile mixed-use development on Jalan Ampang in Kuala Lumpur, alongside a flood mitigation project involving critical river widening and structural sheet-piling works along the Sungai Golok basin as well as mitigation and related works at a reservoir catchment area in Terengganu.
As at end-June 2026, Vestland has cash and cash equivalents of RM13.06 million against borrowings of RM422.6 million.
According to AskEdge data, Vestland’s price-to-earnings ratio stood at 24.1 times. This is higher than most of its peers, such as Sunway Construction Group Bhd (KL:SUNCON) at 23.6 times, but lower than major players like Gamuda Bhd (KL:GAMUDA), which is trading at 27.9 times, and IJM Corporation Bhd (KL:IJM) at 221.9 times.
Meanwhile, the company’s price-to-book ratio of 3.6 times is higher than peers like Gamuda (2.3 times) and IJM Corp (1.0 times) but remains significantly lower than Sunway Construction, which sits at 16.2 times.
Vestland shares closed five sen or 5.88% higher at 90 sen, valuing the company at RM934.9 million. The counter has risen more than 90% over the past one year.