Ekovest tendering for projects worth RM6b

KUALA LUMPUR: The construction sector is set to remain the growth driver for Ekovest Bhd with a RM6 billion tender book.

Managing Director Tan Sri Lim Keng Cheng said between RM3 billion and RM4 billion worth of projects tendered for would originate from Sabah and Sarawak.

“We are eligible to bid for five infrastructure projects, same like other contractors and we have already gone through the pre-qualification process (in Sabah and Sarawak).

“We are directly tendering for these projects through the state government instead of having local partners,” he told reporters after the company’s 33rd annual general meeting here today.

According to the group’s annual report, the construction sector contributed about 60 per cent of the company’s revenue, followed by property development (26 per cent) and toll operations (14 per cent).

“In the long-run, we aim to see a revenue mix of 40 per cent from construction and 30 per cent each from property development and toll operations,” Lim said.

For the financial year ended June 30, 2018, Ekovest delivered more than RM8 billion worth of construction projects across Malaysia.

Ekovest’s construction order book stood at around RM3 billion, which provides the company with earning visibility for the next three years.

Lim said that the company was currently focusing on the construction sector while the property sector would act as a buffer or balancing tool when the construction projects are depleted.

“We would like to wait until the property market recovers and so far, we are quite busy with the construction projects in hand,” he said, adding that Ekovest had no plan to develop its 17.40 hectare land bank.

However, Lim said the company planned to look into the real estate investment trust business within four to five years.

Elaborating on EkoCheras Shopping Mall, the latest project under its property division which had already reached 85 per cent occupancy, Lim said it was expected to be launched in December.

“At first I was sceptical with the success rate of EkoCheras as oversupply of commercial property remained an issue in the Klang Valley but looking at the mall, I believe this is not going to be an issue,” he added.

The diversified company was expected to release its financial results for first quarter ended Sept 30, 2018 on Friday.

Source: NST