Crest Builder bids for RM1.8b construction projects

By PREMALATHA JAYARAMAN

Crest Builder Holdings Bhd is currently tendering for construction projects worth RM1.8 billion and hopes to secure projects in the next quarters.

The firm is also targeting an orderbook of RM500 million this year.

Its group MD Eric Yong Shang Ming said the construction and property developer has an outstanding orderbook of RM1.1 billion, which will last until 2018.

“So far, we have not secured anything yet, but we are actively tendering currently. We are tendering projects worth RM1.8 billion and the bulk of it is building contract projects,” Yong told reporters after the company’s AGM in Kuala Lumpur yesterday.

“We believe that more tenders will be coming out this year and this will enable our tender book to hit the RM3 billion mark. We will continue to actively bid for strategic construction projects in both public and private sectors as well property development projects that will contribute positively to our business,” he said.

Yong said the construction and property developer also expects the revenue ratio for the construction and property segments to be 50:50 in 2018.

“The construction segment remains the bread and butter for the company. Of course, revenue-wise, I think the ideal

target will be 50:50. Currently, the construction segment makes up to almost 70% of its revenue, while the remaining is property segment. The property segment is giving us a better margin,” he explained.

For the first-quarter ended March 31, 2017, Crest Builder’s net profit advanced to RM6.17 million, up 142.6%, compared to RM2.55 million a year earlier, while revenue increased to RM95.03 million from RM51.77 million before.

Yong believes that the outlook for 2017 will be better compared to 2016, driven by the construction segment.

“We are looking to complete a couple of projects this year. Of course, our largest contract to date is the 36-storey towers and six-storey mall, Quarza KL East. It will go on the full swing this year. So, we are looking to post very good numbers this year,” he added.

Asked about the property market, he said the Malaysian property market has started to get more interest from international buyers.

He said the property price in Malaysia is still considered cheaper and reasonable compared to its regional peers.

“For us, we are getting more interests from China, Hong Kong, Australia and Singapore in our properties. We have a different business model,” he said.