WHILE the outlook for the construction sector is not anticipated to be bullish amid the current pandemic-ravaged economy, Cymao Holdings Bhd has shown resilience by securing back-to-back construction projects valued at RM254 mil both today and yesterday (Jan 20).
The plywood products maker was today appointed the main contractor to undertake and complete main building works for a proposed mixed development project in Bandar Batu Ferringgi, Penang with a contract value of RM120 mil.
This follows the signing of a memorandum of understanding (MOU) between its wholly-owned subsidiary Billion Apex Sdn Bhd with Ageson Development Sdn Bhd which is the wholly-owned subsidiary of Main Market-listed property developer Ageson Bhd.
The project consists of a building block comprising 79 units of service apartments, 138 hotel rooms and one-storey basement car park on a parcel of development land measuring 7,395 sq metres (1.83 acre).
“We are optimistic that we would be able to clinch the project with Ageson Development which would strengthen our financial capability and enhance our profiling in the industry,” the company pointed out in a media statement.
“This would also provide an additional revenue stream to the group and help in our turnaround strategy as we reduce our dependency on the plywood business.”
Yesterday (Jan 20), Cymao through Billion Apex accepted a letter of award (LOA) from HYC Properties for a sub-contract works worth RM134.02 mil.
A filing with Bursa Malaysia shows that the job entails the site clearance, hoarding and earthworks for a proposed mixed development project located at Wilayah Sungai Kelian Baru in Mukim Batang Padang, Perak.
The contract duration is for 24 months from the date of authority approval.
At 4pm, Cymao was down 24 sen or 12.44% at RM1.69 with 6.74 million shares traded, thus valuing the company at RM127 mil. – Jan 21, 2021
