RUBBERWOOD furniture maker Sand Nisko Capital Bhd (formerly Len Cheong Holding Bhd) has strengthened its footing in the Melaka construction scene by winning a RM34.5 mil job comprising the development of landed houses, electrical sub-station, infrastructure works and factory extension works.
This follows the acceptance of a letter of award (LOA) by its wholly-owned subsidiary Len Cheong Industries Sdn Bhd from Shantawood Sdn Bhd which is a wholly-owned subsidiary of DPS Resources Bhd, a property developer listed on the Main Market of Bursa Malaysia.
“Barring any unforeseen circumstances, the works are expected to commence in August 2021 and to be completed in July 2023,” commented Sand Nisko Capital’s managing director Emily Sow Mei Chet.
“We expect this project-win to contribute positively to our financial year ending Dec 31, 2021 and onwards until the expiry of the contract.”
According to Sow, the project which came during current trying times as the country is grappling with a spike in COVID-19 cases is a testament of the company’s reputation as a quality contractor as well as its capability to deliver projects on time.
“We are optimistic on the recovery of the property development sector and will participate in more tenders to sustain the group’s earnings visibility in the years to come,” she pointed out.
Recall that in April, Sand Nisko also acquired 25.9 acres of land in Melaka for RM5.8 mil to expand its property development business.
This is made possible by the inking of a sale and purchase agreement between its wholly owned subsidiary Len Cheong Resources Sdn Bhd and Cempakaraya Sdn Bhd for the freehold land plot in the Alor Gajah district.
More broadly, land bank expansion coupled with securing its latest construction job mark a turnaround for the group which has seen its furniture manufacturing and trading division languished amid the COVID-19 pandemic.
Since last year, the group has diversified away from the furniture manufacturing and trading division into the construction and property development segment.
Earlier in January, Sand Nisko through Len Cheong Resources has also entered into a joint venture agreement with Goldpeace Corporation Sdn Bhd to jointly develop a parcel of freehold land in Melaka.
The latest acquisition is in line with the group’s efforts to increase its land bank for the purpose of property development, according to Sow.
At the close of today’s trading, Sand Nisko was up 13 sen or 11.02% to RM1.31 with 6.3 million shares traded, thus valuing the company at RM135 mil. – July 14, 2021
