Hot Stock Instacom rises 3.57% on securing housing project

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Instacom rises 3.57% on securing housing project

By Sangeetha Amarthalingam / theedgemarkets.com   | December 8, 2015 : 10:49 AM MYT

KUALA LUMPUR (Dec 8): Telecommunication tower builder Instacom Group Bhd ([You must be registered and logged in to see this image.] Valuation: 0.20, Fundamental: 1.95) rose 3.57% on securing a RM116.4 million contract from Chinese government-linked company China Railway Construction Corp Ltd (CRCC)’s Malaysian unit.
At 10.26am, Instacom went up half sen or 1.79% to 28.5 sen after paring gains at 29 sen, with 39.1 million shares done for a market capitalisation of RM655.3 million.
Yesterday, Instacom announced that its subsidiary Vivocom Enterprise Sdn Bhd accepted a letter of award (LoA) from CRCC Malaysia Bhd to build a gated housing community in Bandar Ulu Klang, Gombak, Selangor.
The project involves semi-detached units, villa mansions, apartment block and housing units under the Rumah Selangorku scheme.
The LoA, which is subject to [an] agreement between Vivocom and CRCC, is in addition to contracts totalling RM231 million received from the latter last month.
Meanwhile, CIMB Research reported that Instacom stood to benefit substantially from the subcontract works handed out by CRCC for the RM8 billion Gemas-Johor Bahru double-track rail project.
Assuming CRCC ends up with 90% of the RM8 billion Gemas-JB project contract sum and Instacom wins 25% to 40% of the subcontract works, it could secure RM2 billion to RM3 billion in jobs from CRCC.