KUALA LUMPUR: Johor-based construction company Haily Group Bhd (HGB) has secured a RM41.28 million contract to build resort villas in Iskandar Puteri, marking the company's largest contract won since its listing on the ACE Market in July 2021.
HGB's wholly-owned subsidiary, Haily Construction Sdn Bhd (HCSB) had on January 24, 2022 accepted a letter of award from DP Architects Sdn Bhd on behalf of Country View Resources Sdn Bhd for the construction of Phase 1 of a tourist resort strata development located in Aurora Sentral, Pulai, Johor.
The latter is the wholly-owned subsidiary of Bursa Malaysia-listed Country View Bhd.
Under the contract, HGB will construct 121 units of two-storey link cillas, one unit of TNB sub-station and one unit of refuse chamber.
The overall duration of the project is 18 months, and the works are expected to be commenced on January 28, 2022 and to be completed on July 28, 2023.
This is the third contract bagged by HGB in relation to Aurora Sentral in a span of less than a year.
To recap, in March 2021, HGB was appointed to construct 147 link villas in Aurora Sentral for RM45.08 million and a clubhouse with a swimming pool for RM6.74 million.
With the addition of the new project, HGB's outstanding order book value provides earnings visibility up till 2023.
The appointment of HGB to develop Aurora Sentral in the heart of Johor's administrative city is in line with the company's aim to expand its footprint in the local construction landscape.
HGB executive director See Tin Hai the challenges in the overall economy and the construction industry have not stopped the company's growth.
"In the past five months alone, we have successfully bagged seven contracts, including from well-known listed companies such as IOI Properties Group Bhd, Mah Sing Group Bhd and Country View Bhd.
"This is the testament to our proven track record and ability to deliver quality construction works as per the requirements of our clients," he said in a statement today.
He said amidst the uncertainties arising from the Covid-19 pandemic, HGB is cautiously optimistic of prospects and the outlook of the construction industry, given the expected recovery for the overall economy this year.
"The company will remain focused on residential building construction while expanding into industrial building construction," he said.
Moving forward, HGB's medium-term strategies include a greater focus on its core competency in Johor's building construction landscape as well as to expand into other districts in Johor, from Johor Bahru and Kulai districts into other districts in the state.
"In addition, we aim to accelerate our productivity growth and improve the efficiency of our operations through the purchase of new construction machinery as well as contract management and accounting software," he said.
HGB is positive that the contract for Phase 1 of the tourist resort strata development located in Aurora Sentral will contribute positively to the company's earnings and net assets over the duration of the project.
This latest contract follows HGB's success in securing multiple tenders for construction projects amounting to over RM100 million in the fourth quarter ended December 31, 2021.
To recap, HCSB had on December 20, 2021 secured a RM40.67 million contract from Austin Senibong Development Sdn Bhd to construct 99 units of 3-storey shop offices in Tebrau, Johor.
On November 12, 2021, the company accepted a letter of award from Nice Frontier Sdn Bhd for a community housing project in Kulai, Johor worth RM14.57 million.
Further, HCSB had on November 5, 2021, accepted an award for a residential project by Factor Synergy Sdn Bhd worth RM23.70 million.
HCSB had also, on November 2, 2021, accepted an award for a residential housing project by Gunung Impian Development Sdn Bhd located in Tebrau, Johor worth RM27.21 million.
On October 18, 2021, HCSB won a RM24.5 million contract from Meridin East Sdn Bhd for a terrace residential project in Plentong, Johor Bahru.
In the first nine months (9M) ended 30 September 2021 (FY21), HGB recorded a revenue of RM89.43 million and a net profit of RM3.05 million.
The company's balance sheet also remains sturdy, with cash and short-term deposits of RM38.35 million against total borrowings of RM1.92 million.
HGB made its debut on the ACE market of Bursa Securities on July 21, 2021.