“Haily Group wins RM53.72M contract to construct 221 homes and TNB facilities in Johor, boosting earnings. Shares drop 3.25%, market cap at RM115.78M.”
Johor, 01st July 2024, 11.55am – Builder Haily Group Bhd has won a RM53.72 million contract from Venice View Development Sdn Bhd to construct 221 two-storey houses, three Tenaga Nasional Bhd (TNB) substations, and a TNB main switch station in Pulai, Johor.
In a Bursa Malaysia filing on Friday, Haily announced that its wholly-owned subsidiary, Haily Construction Sdn Bhd, received a letter of award for the project, which spans two parcels of land.
The project is expected to be completed within 15 months from the commencement date, which will be determined by the architect, ARC Alliance Sdn Bhd.
Haily stated that the contract is anticipated to positively impact the group’s earnings and net assets per share throughout the project’s duration.
Haily’s net profit dropped by 17.57% to RM1.53 million for the first quarter ending March 31, 2024, down from RM1.86 million in the same period last year, due to increased administrative expenses and a lower profit margin. However, revenue for the quarter rose by 6.03% year-on-year to RM72.11 million from RM68.01 million, driven by its building construction segment.
Haily’s shares fell by two sen or 3.25% to 59.5 sen on Friday, resulting in a market capitalisation of RM115.78 million.
