“Fajarbaru wins RM246 million contract for AdisonWest’s second phase, increasing its order book to RM1.23 billion, ensuring earnings visibility through 2027.”
Kuala Lumpur, 17th Oct 2024, 01.29pm – Fajarbaru Builder Group Bhd, which secured a contract in April to construct apartments as part of the first phase of WCT Holdings Bhd’s AdisonWest development in Johor Bahru, has now been awarded the contract for the second phase.
The second contract, valued at RM246.09 million, involves building four towers with 896 serviced apartment units, recreational facilities, a six-storey podium with parking, commercial lots, and an apartment lobby, Fajarbaru revealed in a filing on Wednesday.
The initial contract, worth RM252.26 million, was for the construction of eight towers totaling 1,024 units.
Fajarbaru announced that the construction of the second phase, expected to last 36 months, will positively impact its earnings and net assets starting from the financial year ending June 30, 2025.
Following this new contract, the company’s order book has increased to RM1.23 billion, providing earnings visibility through 2027, according to a separate statement.
“With a strong pipeline of projects and a positive industry outlook, Fajarbaru is well-positioned to meet growing market demands,” said Executive Chairman Tan Sri Chan Kong Choy.
Fajarbaru’s shares dipped by half a sen or 1.19% to 41.5 sen on Wednesday, with a market capitalization of RM309.05 million. The stock has risen by over 43% year-to-date.