Tuju Setia expects more contract wins in FY21

The firm currently has an orderbook of RM1.1b, and is bidding for RM3.8b in constructing high-rise buildings

by TMR / Pic by TMR GRAPHIC

TUJU Setia Bhd expects to win more projects this year after securing four new contracts totalling RM587.1 million year-to-date.

The construction services company currently has an orderbook of RM1.14 billion, and is bidding for RM3.8 billion worth of works in constructing high-rise buildings, as well as design and construction of hospitals and healthcare facilities.

Tuju Setia is 2021’s first Main Market IPO on Bursa Malaysia yesterday, as it debuted at 77.5 sen, at a 10.7% premium over the issue price of 70 sen a share.

The company’s stock hit a high of 87.5 sen and low of 73.5 sen in intraday trade before closing at 7.5 sen or 11.3% premium above its offer price at 74 sen on its maiden trading day.

“Tuju Setia’s recent wins demonstrate the robust recovery in construction activity and zeal of property developers to fulfil market demand. Our current RM1.14 billion orderbook is a testament of our good standing in the construction industry and vote of confidence from our established clientele in our construction capabilities,” its MD Wee Eng Kong stated in a release yesterday.

He added that the company intends to stay on its growth path by strengthening its technical expertise and quality in constructing high-rise buildings, as well as design and construction of hospitals and healthcare facilities.

“We aim to continue expanding our current tender book of RM3.8 billion to sustain our momentum,” he added.

Tuju Setia’s ongoing projects include Mutiara Central Office Suites (Cheras), Riana Dutamas Phase 2 (Segambut), The Pulse Residence (Bandar Puteri Puchong), PPAM Sofiya Residensi (Desa ParkCity), Emerald Hills Phases 3 and 4 (Cheras), TUAI Residence (Setia Alam), 121 Residences (Petaling Jaya), One Equine (Seri Kembangan) and the Kajang Women and Children Hospital.

Wee stated that Tuju Setia has adopted a dividend policy to distribute 25% of its earnings as dividends.

Tuju Setia’s IPO exercise saw the company raised RM56 million, of which RM32 million will be allocated for capital expenditure. This would include the purchase of new construction machinery and equipment and building information modelling system software to upskill design and construction activities.

The group also plans to buy land and construct new storage facilities for better organisation and utilisation of machinery and equipment and improve efficiency of maintenance works.

A further RM19 million will be allocated for working capital and RM5 million used to defray listing expenses. — TMR