PETALING JAYA: Ikhmas Jaya Group Bhd is upbeat on posting double-digit revenue growth for the financial year ending Dec 31, 2017 (FY17), on the back of its current outstanding orderbooks amounting to RM868 million.
Group managing director Datuk Ang Cheng Siong said as of June this year, the company has replenished its orderbook of RM333 million, mainly for bore piling and basement works in construction projects.
"We believe the company will have another (strong) financial performance attributable to our healthy orderbooks," he said after the company's annual general meeting in Ara Damansara today.
Ang added that Ikhmas Jaya is expected to record between 7 and 9 per cent annual net profit from secured contracts margins.
"The government is currently aggressive on investing in infrastructure projects. We specialise in bore piling and bridge works. We believe our expertise is required for the infrastructure projects.
"However, we have to be selective in running projects to reduce risks. We maintain (our status) as a special sub-contract for bore piling and bridge works," he said.
Ang said the company is also eyeing the Gemas-Johor Baru Double-Tracking Line and East Coast Rail Link (ECRL) projects.
"Most of our secured contracts are from the private sector (and) we believe that contract works for the private sector will pick up this year in terms of tenders," he said.
However, Ang pointed out that the ratio of government and private infrastructure projects will be 50:50, as both will complement the country's overall development plans.
"We currently utilise 100 per cent of our construction equipment. We maximise our resources to operate efficiently with a cost reduction mechanism," he said.
Asked on whether the company has incurred losses due to the ringgit’s volatility, Ang added that most of the company's construction materials are locally-sourced.
"We buy the materials locally, such as cement and concrete. Sometimes, we buy the steel from overseas, which may have a slight impact in terms of pricing as the global market determines the price," he said.
Ang said Ikhmas Jaya is not focussed on building entire construction projects, hence, it is not much impacted by the ringgit’s fluctuations.