EARTHWORKS and civil engineering services specialist Advancecon Holdings Bhd through its subsidiary, Advancecon Infra Sdn Bhd, has secured a RM60.6 mil contract from China Communications Construction (CCC) Sdn Bhd to undertake subgrade works for Section 4 (Package 3) of the East Coast Rail Link (ECRL) infrastructure megaproject.
The contract would be for a duration of 25.5 months from its commencement in March 2021 till the project completion in April 2023.
This represents the group’s fourth contract within the ECRL, having been awarded its first two contracts within Section 6 of the ECRL in September 2020, amounting to RM53.7 mil and RM27.1 mil respectively.
A third contract worth RM29.8 mil within Section 4 of the ECRL was subsequently secured in the same month, bringing Advancecon’s total ECRL contract wins to RM171.2 mil.
“Securing yet another ECRL contract speaks volumes of our strong track record and competitiveness in providing efficient earthworks and civil engineering services,” Advancecon group CEO Datuk Phum Ang Kia pointed out.
“With resources already mobilised in the project, we can seamlessly allocate machinery and manpower among all packages in a timely manner to make progress within the agreed timeframes.”
Moving forward, Phum is optimistic about securing more contracts within the ECRL as well as other major infrastructure projects across the country. “We are aiming to grow in tandem with the gradual recovery of the construction sector,” he added.
With this latest contract win, Advancecon’s orderbook expands to RM774.8 mil which would provide earnings visibility for a minimum of 25 months.
The group’s existing orderbook comprises works for key infrastructure projects including West Coast Expressway, Pan Borneo Highway and new roads in Sarawak under the Upper Rajang Development Agency, as well as earthworks for reputable property developers like SP Setia Bhd and Sime Darby Property Bhd.
At the close of the morning session, Advancecon was up 1 sen or 2.82% with 441,200 shares, thus valuing the company at RM148 mil. – Jan 26, 2021
