Astral Supreme bags RM80.53m subcontract for Sabah housing project

by **Cals** Tue 03 Nov 2015, 22:59

Astral Supreme bags RM80.53m subcontract for Sabah housing project

By Ahmad Naqib Idris / theedgemarkets.com | November 3, 2015 : 8:59 PM MYT

KUALA LUMPUR (Nov 3): [size=16]Astral Supreme Bhd ([You must be registered and logged in to see this image.] Valuation: 0.00, Fundamental: 0.75)'s wholly-owned subsidiary Astral Supreme Construction Sdn Bhd (ASC) has received a letter of award from Kuasa Lumpadang Sdn Bhd for subcontract works worth RM80.53 million for the People's Housing Programme project at Ulu Perasan, Kota Belud, Sabah.

Astral said the subcontract entails the supply of material, labour, and necessary tools and equipment to carry out the designing, building and delivery of 900 units of single-storey terrace houses.

"ASC will undertake the main building works (except for earthwork) which includes structure, architecture and mechanical and electrical works complete with ancillary building, landscaping and infrastructural works," it told Bursa Malaysia today.

The company estimates a gross profit margin of 6.8% for the contract, based on an estimated contract cost of RM75.05 million. It said the funding for the project will be sourced by internally generated funds.

Works for the subcontract will commence in the fourth quarter of 2015, and is expected to complete 24 months after commencement.

"As a relatively new player in the construction sector, the award provides an opportunity for the group to enhance their credentials in the construction segment and open up new opportunities in the state of Sabah," it said.

It also said the contract provides an opportunity to replenish its orderbook, as its projects in Melaka, comprising two subcontract works with a total value of RM105.0 million, are nearing completion.

"The board believes the award will lead to an expansion of the group's construction activities in the future and contribute positively to the group's financial performance," said Astral.

Astral's counter fell 0.5 sen or 3.85% to close at 12.5 sen today, bringing its market capitalisation to RM36.48 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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