KUALA LUMPUR (Oct 26): Foundation and basement construction specialist Aneka Jaringan Holdings Bhd (KL:ANEKA) has secured a RM53.35 million contract to undertake piling works for the proposed Rio City Town Centre development in Selangor.
Rio City Town Centre is part of IOI Properties Group Bhd's (KL:IOIPG) 100-acre IOI Rio City integrated development in Bandar Puteri Puchong. The development has an estimated gross development value of RM12 billion and will comprise residential, office, retail and hospitality components, including the planned IOI Mall Rio.
Aneka Jaringan's wholly-owned subsidiary Aneka Jaringan Sdn Bhd had accepted a letter of award from EDP Consulting Group Sdn Bhd, acting on behalf of IOI Rio Mall Sdn Bhd, IOI Hospitality Sdn Bhd and IOI Rio Towers Sdn Bhd, the group said in a bourse filing on Monday.
The contract for bored piling works involves drilling deep holes into the ground and filling them with reinforced concrete to support the foundations of buildings.
The contract commenced on Oct 20 and is scheduled for completion on Aug 19, 2027.
"The Rio City Town Centre project represents another meaningful addition to our project portfolio within the Klang Valley, and we remain focused on disciplined execution, strong safety standards and timely delivery throughout the contract period," Aneka Jaringan managing director Pang Tse Fui said in a separate statement.
"We will continue to selectively pursue projects that align with our technical strengths and offer favourable commercial terms, while maintaining a disciplined approach towards project execution and cost management," he added.
The latest contract comes as escalating construction costs push Aneka Jaringan into the red despite rising revenue.
For the third quarter ended May 31, 2026 (3QFY2026), the group posted a net loss of RM1.91 million, compared with a net profit of RM738,000 a year earlier, despite revenue rising 38.5% to RM68.41 million from RM49.4 million.
It attributed the weaker performance to higher material, fuel and transportation costs, which squeezed project margins.
For the first nine months of FY2026, Aneka Jaringan slipped into a net loss of RM281,000 from a net profit of RM3.64 million in the previous corresponding period, although revenue increased 15.9% to RM227.05 million from RM195.83 million.
As at July, the group had secured RM224.34 million worth of new contracts, while its outstanding order book stood at RM190.45 million.
Shares in Aneka Jaringan were untraded on Monday. It last closed at 10 sen with a market capitalisation of RM69.45 million. Year to date, the counter has dropped more than 23%.