KUALA LUMPUR: Advancecon Holdings Bhd is tendering for RM1.5 billion worth of contracts in the infrastructure and property development space to bolster its orderbook.
In a statement today, the company said it is bidding to undertake earthworks and civil engineering works for a diverse range of projects, including the East Coast Rail Link (ECRL), various road works in Sarawak and residential townships in Peninsular Malaysia.
As at March 31, 2020, Advancecon's orderbook stood at RM704.5 million or 2.4 times of its audited revenue in the previous year, providing earnings visibility for at least 18 months.
Its orderbook encompasses works for infrastructure projects like West Coast Expressway, Pan Borneo Highway and new roads in Sarawak, as well as property development projects including Setia Alamsari (South), Eco Ardence, Nilai Impian and Serenia City.
Advancecon group chief executive officer Datuk Phum Ang Kia said works at its project sites had since fully resumed from end-May with all on-site workers having undergone and passed Covid-19 tests.
"We are keen to resume normalcy and regain our momentum both in ramping up on-site works, as well as replenishing our orderbook with new projects, especially in the infrastructure space.
"Advancecon is well-placed to support the nation's megaproject aspirations, backed by our track record in handling major infrastructure projects, along with our large machinery fleet in Peninsular Malaysia and Sarawak." he said.
As at March 3 this year, Advancecon managed 15 ongoing projects in Selangor, Negri Sembilan and Sarawak.
Meanwhile, Advancecon's net profit increased 7.8 per cent to RM2.18 million in the first quarter (Q1) ended March 31, 2020 from RM2.02 million recorded a year ago.
Advancecon said the stronger bottomline was driven by several factors. This included the recognition of profit from one completed project as compared to none in the same period last year, absence of Employee Share Options Scheme (ESOS) charge, lower administrative expenses, reduced finance cost and lower diesel costs.
Its revenue, however, slipped 8.3 per cent to RM66.32 million from RM72.33 million, attributed to lower progress billings from its ongoing construction projects and support services.