Advancecon Holdings Berhad has successfully awarded an engineering contract for ECRL with a total value of about RM80.8mil. The first project with a total value of about RM53.74mil will start on 7 September 2020 and expected to be completed on 6 January 2023. While for the second project, about RM27.09mil, will start its construction on 7 September 2020 and is expected to be completed on 6 September 2022.
Unless there are some uncertain circumstances occurred, the subcontract will make a positive contribution to the future earnings of the group during the subcontract period, without any impact on the equity of the group and the shareholding of the major shareholders. The success of these contracts has boosted the group’s existing earthwork and civil engineering orders in a timely manner, while also demonstrating the confidence of civil customers in the company as part of China’s largest infrastructure development project.
According to the news, Advancecon Infra Sdn Bhd (AISB), a wholly-owned subsidiary of Advancecon Holdings Berhad, has successfully won China Communications Construction (ECRL) private company limited and awarded the East Coast Railway project contract with a total value of RM29.78mil. AISB also has received a Letter of Acceptance (LoA) from China Communications Construction Corporation (ECRL).
The company will act as the contractor of ECRL project and will be responsible for Subgrade and related works. The contract will last for 14.5 months, which will start on 1 March next year and is expected to be completed on 15 May 2022. Advancecon Infra is mainly engaged in the earthwork and civil engineering services. The company will plan to fund the contract through internally generated funds and external borrowings.
The above data are purely based on personal views. The content above does not contain any trading advice, and only can be used as learning and information purposes. Please analyze by yourself, understand the risks, and discuss the nature of investment with professional financial advisors.