UEM Edgenta's Sarawak Win Could Pave Way for Future Projects
The Edge Markets, Photo Credit to The Edge Markets
clock 21-04-2019
hit 157

UEM Edgenta Bhd's unit Opus Consultants (M) Sdn Bhd could bag further wins after it was named project management consultant (PMC) for the RM11 billion Sarawak Coastal Road Network and Second Trunk Road projects, according to Hong Leong Investment Bank (HLIB) Research.


"There are also opportunities for UEM Edgenta via Edgenta Propel Bhd to participate in the road pavement works and operation and maintenance post project completion," the research house said in a report today.

Yesterday, UEM Edgenta said in a statement that Opus will be working with the Sarawak Public Works Department to provide overall project management and technical enterprise after it had recently been awarded the first package of the project worth RM50 million.

The PMC role will require Opus to oversee the preliminary and detailed designs of 20 work packages, upgrading works, as well as the construction of new bridges and roads, among others.

"We are positive on this news as it marks a step in the right direction for the group in turning around Opus's fortunes after a disrupted 2018 financial year on the back of GE14, which saw major infrastructure projects being halted," HLIB Research said.

The estimated project management contract value is estimated to be some 1.5% to 1.8% of the total RM11 billion work package to be undertaken in phases over a ten-year period, it noted.

"We understand that the RM50 million work package is for the 2019 financial year and that the potential for more jobs is high — subject to Sarawak Public Works being satisfied with Edgenta's performance," it added.

HLIB Research maintained its 'buy' recommendation on UEM Edgenta with a target price of RM3.41.

At 11.04am, UEM Edgenta was up 0.36% or 1 sen to RM2.75 with 84,500 shares done.




WHAT DO YOU FEEL ABOUT THIS?

0
LOVE
0
HAPPY
0
SURPRISED
0
SAD
0
ANGRY


COMMENTS
Use a Facebook account to add a comment, subject to Facebook's Terms of Service and Privacy Policy. Your Facebook name, photo & other personal information you make public on Facebook will appear with your comment.

SIGN UP NEWSLETTER

logo
Monthly Column
The staple of your property-related materials. It's all about being ahead of the game and with The Column, you get carefully selected information that will keep you informed and running with the pack. The best news, articles and properties on the market from the Property Hunter portal, conveniently wrapped and ready, just for you.

logo
Weekly Window
Your weekly dose of what's hot and what's not in property. The window is your view into the realm of real estate in Malaysia, curated from our portal based on the most popular pieces over the week. For those who just can't get enough, this is for you. Ain't nobody got time for dailies anymore, weekly is the new daily.