KUALA LUMPUR (Mar 24): Fajarbaru Builder Group Bhd’s wholly-owned unit Fajarbaru Builder Sdn Bhd (FBSB) has received a letter of acceptance from Prasarana Malaysia Bhd for works relating to the Kelana Jaya light rail transit (LRT) line extension project.
In its filing with the exchange today, the construction group said the contract encompassed the construction, completion, testing and commissioning of remaining works of stations 1, 2 and 3, TPSS A & B, including civil works, external works and all other associated works.
The contract is valued at RM108.97 million, to be completed on Jan 15, 2016.
To recap, Fajarbaru (fundamental: 1.15; valuation: 1.2) had previously accepted a nominated sub-contract worth RM62.67 million from Trans Resources Corp Sdn Bhd (TRC) for the works on March 4, 2011.
“The board wishes to inform that FBSB has on March 23, 2015, received a mutual termination agreement dated March 12, 2015, from TRC to mutually terminate the nominated sub-contract,” said the group.
It said the contract will have no material effect on its share capital and substantial shareholders’ shareholdings.
“The contract is expected to contribute positively to the earnings and net assets of the Fajarbaru group for the financial years ending June 30, 2015, and June 30, 2016,” the group said.
Fajarbaru fell 0.5 sen or 1.16% to 42.5 sen, bringing its market capitalisation to RM141.42 million.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)