KUALA LUMPUR: Putra Perdana Construction Sdn Bhd (PPC), the construction arm of Putrajaya Perdana Bhd which is bidding for RM4.5 billion worth of projects in the next two months, is targeting another record year in its current financial year ending Dec 31, 2016 (FY16), driven by its firm order and tender books.
Speaking to reporters during a briefing on the release of its FY15 results yesterday, its chief executive officer Goh Cheah Chuang said the company has an outstanding order book of RM1 billion as of July 2016.
These projects, he said, are Arcadia at Desa Park City, Southkey Mosaic in Johor Baru, Westport CT 8 extension and a serviced apartment in Pandan Perdana.
“We have submitted bids valued at RM3.55 billion so far and are awaiting the awards,” Goh shared. These bids, together with the RM4.5 billion that it is going to tender for, involve local building and infrastructure works such as the high speed rail, highways, the light rail transit and the mass rapid transit.
“We hope to secure part of the jobs to sustain our earnings momentum,” said Goh, who has been helming the company since 2013.
For FY15, PPC recorded a 13% year-on-year rise in profit after tax to RM78 million from RM69 million.
Revenue almost doubled to RM1.18 billion from RM607 million as contribution from projects it had secured prior to FY15, like KL Eco City, KL Eco City Mosque, and Projek Air Mentah Rapid for Petronas — jobs which are collectively valued at RM1.32 billion — started to kick in.
The unit’s revenue accounted for 95% of Putrajaya Perdana’s total revenue for the year.
Going forward, Goh is cautiously optimistic about the company’s performance. “There are signs of slowing down in the domestic residential properties. We hope the government’s initiative to boost the infrastructure sector could help us mitigate the impact.”
He also sees interest pick up in the commercial construction sector, like shopping malls and hospitals. “Buildings that are linked to tourism segment also provides better outlook ahead.”
Founded in 1986, PPC is celebrating its 30-year anniversary this year. “We have no plans for an IPO (initial public offering) at this juncture, not unless market sentiment recovers,” said Goh.
Some of its more distinguished projects include: Pavilion Kuala Lumpur, KL Eco City, The Intermark, Serai in Bangsar and Arcadia at Desa ParkCity, Sarawak Energy Bhd’s head office, Menara Felda, and Menara PJH (Putrajaya).