The link project is expected to commence on Jan 7, 2015 with a contract period of 24 months.
Positive view on Sunway highway job
SUNWAY Bhd said its wholly-owned subsidiary, Sunway Construction Sdn Bhd, has signed a letter of acceptance issued by SJIC Bina Sdn Bhd, a wholly owned subsidiary of Iskandar Investment Bhd in relation to the proposed design, construction, testing and completion of the Coastal Highway Southern Link, Johor for RM169.3mil.
The proposed project is expected to commence on Jan 7, 2015 with a contract period of 24 months. HLIB Research is positive about the proposed project as it will further increase the group’s outstanding orderbook to RM3.3bil (as at Dec 29). This implies 2.26 times cover over Sunway’s 2013 financial year construction revenue.
The planned project would be the fourth largest order book replenishment after Sunway Velocity 2 Mall, Sunway Iskandar and Sunway Medical Centre 3. The fifth largest project held by Sunway Construction is the Sunway Geo Retail Shops and Flexi Suites at RM153mil.
The Coastal Highway Southern Link is expected to benefit Sunway Iskandar, a major township by Sunway, Khazanah Nasional Bhd and Iskandar Investment Bhd, and other developments in Medini Iskandar.
HLIB Research remains optimistic about the group, especially with the proposed listing of Sunway Construction as it will further enhance shareholders’ value.
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