Cymao bags RM120m construction contract in Penang

By LYDIA NATHAN / Pic TMR

CYMAO Holdings Bhd’s wholly-owned subsidiary, Billion Apex Sdn Bhd (BASB), inked a memorandum of understanding (MoU) with Ageson Development Sdn Bhd (ADSB) for construction works worth RM120 million.

The plywood maker, which recently diversified into construction, noted that the contract appoints BASB as the main contractor for a proposed mixed development project in Bandar Batu Feringgi, Penang.

The project consists of 79 units of serviced apartments, 138 hotel rooms and a one-storey basement car park on a parcel of development land measuring 7,395 sq m.

Cymao said the MoU signing is a pivotal step for the group as it ventures into more complex construction works for the property development sector.

“This would further strengthen our position in the construction industry, as we have shown that we are competitive in our bid for all the projects. Our ability to secure the contracts and execute the property development projects would boost our reputation in the sector,” Cymao stated in a release yesterday.

Cymao added that the enhancement of its scope will further be a show of confidence among other developers.

“We are optimistic we would be able to clinch the project with ADSB, which would strengthen our financial capability and enhance our profiling in the industry. This would also provide an additional revenue stream to the group and help in our turnaround strategy as we reduce our dependence on the plywood business,” it said.

On Wednesday, BASB clinched a project to undertake construction works from HYC Properties Sdn Bhd worth RM134.02 million.

The 24-month contract will consist of site clearing, hoarding and earthworks for the proposed mixed development project in Perak. Cymao first announced plans to diversify into construction and project management in December 2020. The fresh contract award saw Cymao’s share price recover from its intraday low of RM1.55 to close the trading day yesterday 10 sen higher at RM2.03.