Eversendai secures RM120m Penang warehouse contract

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KUALA LUMPUR (Feb 9): Eversendai Corp Bhd has secured a RM120 million contract from PKT Logistics Group to build the latter's warehouses in Batu Kawan, Penang.

In a filing with Bursa Malaysia today, Eversendai (fundamental: 0.75; valuation: 1.2) said the warehouses known as "12 Waves", would be a part of the One Auto Hub across 28ha (70 acres) in Batu Kawan.

"One Auto Hub is expected to emerge as one of the largest automotive logistics provider in Malaysia, to cater to the needs of the automotive industry under the purview of the Northern Corridor Implementation Authority.

"We have established a long-standing relationship with PKT Logistics Group, after successfully constructing their RM65 million warehouse in 2010," Eversendai executive chairman and group managing director Tan Sri A K Nathan said.

The "12 Waves" project will include 12 warehouses, a rest and relax area for truckers, and an office suite equipped with covered solar parking.

The contract is scheduled to begin in March 2015 and complete by April 2016.

He said "12 Waves" was the first of three phases at One Auto Hub, which was valued at RM700 million.

As 2:49pm, Eversendai shares rose 1.5 sen or 2.5% to 62 sen, for a market capitalisation of some RM480 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)