KUALA LUMPUR: Ekovest Bhd is planning to focus on its construction segment in 2018 and leverage on its RM5 billion tenderbook and RM6 billion in orderbook.
Speaking to reporters after its annual general meeting held today, Ekovest managing director Datuk Seri Lim Keng Cheng said there are bright prospects for the construction sector ahead.
“Ekovest is well positioned for sustained growth with a healthy construction orderbook in hand. This is expected to keep the company busy for the next three to five years. To-date, Ekovest has a tender book of more than RM5 billion worth of jobs.
“Strong revival of job flows is also expected in the near future, driven by several mega rail projects such as the ECRL, HSR and MRT3, of which the contribution should not be underestimated.
“We are constantly reviewing and thinking of new infrastructure projects. Ekovest can and will promote ourselves to be ready to take on jobs that will benefit the whole of Kuala Lumpur. Providing traffic solutions through world-class infrastructure is our bread and butter,” he said.
Malaysia’s construction industry growth is expected to be among the fastest in the world from 2016 to 2020, supported by the government’s plan to improve the country’s transportation network and tourism infrastructure, as well as increase the volume of renewable projects.
On its business segment restructuring moving forward, Lim however said in the next five years, the company aims to scale down its construction segment from the current 70 per cent to 40 per cent gradually.
Concurrently, the company would be leveraging from its toll operation and property segments, which it also plans to increase to 30 per cent respectively in due time.
Lim explained that the plan will be done gradually despite the construction segment remaining in focus for 2018.
On the property development division, he said Ekovest has six projects with potential gross development value (GDV) in excess of RM7 billion lined up in its 10-year development master plan.
The company currently has a land bank of 30 acres located primarily in northern Kuala Lumpur and this will be the focus of our property division in the coming years.
For the financial year ended June 30, 2017, Ekovest registered revenue of RM1.1 billion, an increase of 37.2 per cent, compared to the results for financial year ended June 30, 2016.
The construction division remained the biggest contributor, accounting for 79 per cent of the registered revenue.
While there are many challenges faced by the construction industry, the company has put in place a strategy to navigate the business and the company remains committed to improve the efficiency and focus of its operations.
Ekovest said it would continue to work closely with the industry and the government to continue the company’s steady performance and further deliver growth and to achieve better performance.
The government’s efforts to address the country’s housing shortage would also help the property development industry continue its growth of the next coming years.