HAILY WINS RM41 MILLION CONTRACT TO BUILD 121 RESORT LINK VILLAS IN ISKANDAR PUTERI, JOHOR
This latest contract increased the value of Haily’s total projects to RM599 million
JOHOR, 24 January 2022 — Johor-based construction company Haily Group Berhad (“Haily” or the “Group”) has kicked off the new year with a RM41.28 million contract to build resort villas in Iskandar Puteri, and this marks the Group’s largest contract won since its listing on the ACE Market in July 2021.
Haily announced today that its wholly-owned subsidiary, Haily Construction Sdn Bhd had on 24 January 2022 accepted a Letter of Award from DP Architects Sdn Bhd on behalf of Country View Resources Sdn Bhd for the construction of Phase 1 of a Tourist Resort Strata Development located in Aurora Sentral, Pulai, Johor. The latter is the wholly-owned subsidiary of Bursa Malaysia Securities Berhad (“Bursa Securities”)-listed Country View Berhad.
Under the contract, Haily has been entrusted to construct 121 units of 2-storey Link Villas, 1 unit of TNB sub-station and 1 unit of refuse chamber. The overall duration of the project is 18 months, and the works are expected to be commenced on 28 January 2022 and to be completed on 28 July 2023.
This is the third contract bagged by Haily in relation to Aurora Sentral in a span of less than a year. To recap, in March 2021, Haily was appointed to construct 147 Link Villas in Aurora Sentral for RM45.08 million and a clubhouse with swimming pool for RM6.74 million.
With the addition of the new project, Haily’s outstanding order book value provides an earnings visibility up till 2023. The appointment of Haily to develop the prestigious Aurora Sentral in the heart of Johor’s administrative city is in line with the Group’s aim to expand its footprint in the local construction landscape.
Mr. See Tin Hai (“薛廷海”), Executive Director of Haily Group Berhad said:
“The challenges in the overall economy and the construction industry have not stopped our growth. In the past five months alone, we have successfully bagged seven contracts, including from well-known listed companies such as IOI Properties Group Berhad, Mah Sing Group Berhad and Country View Berhad. This is testament to our proven track record and ability to deliver quality construction works as per the requirements of our clients.
Amidst the uncertainties arising from the COVID-19 pandemic, we are cautiously optimistic of our prospects and the outlook of the construction industry, given the expected recovery for the overall economy this year. The Group will remain focused on residential building construction, while expanding into industrial building construction.
Moving forward, Haily’s medium-term strategies include a greater focus on its core competency in Johor’s building construction landscape as well as to expand into other districts in Johor i.e. from Johor Bahru and Kulai districts into other districts in the state. In addition, we aim to accelerate our productivity growth and improve the efficiency of our operations through the purchase of new construction machinery as well as contract management and accounting software.”
Haily is positive that the contract for Phase 1 of the Tourist Resort Strata Development located in Aurora Sentral, Pulai, Johor, would contribute positively to the Group’s earnings and net assets over the duration of the project. This latest contract follows Haily’s success in securing multiple tenders for construction projects amounting to over RM100 million in the fourth quarter ended 31 December 2021.
To recap, Haily Construction had on 20 December 2021 secured a RM40.67 million contract from Austin Senibong Development Sdn Bhd to construct 99 units of 3-storey shop offices in Tebrau, Johor. On 12 November 2021, the company accepted a Letter of Award from Nice Frontier Sdn Bhd for a community housing project in Kulai, Johor worth RM14.57 million. The company had on 5 November 2021, accepted an award for a residential project by Factor Synergy Sdn Bhd worth RM23.70 million.
Haily Construction had also, on 2 November 2021, accepted an award for a residential housing project by Gunung Impian Development Sdn Bhd located in Tebrau, Johor worth RM27.21 million. Meanwhile, on 18 October 2021, it won a RM24.5 million contract from Meridin East Sdn Bhd for a terrace residential project in Plentong, Johor Bahru.
In the first nine months of FY2021 ended 30 September 2021, Haily recorded a revenue of RM89.43 million and a net profit of RM3.05 million. The Group’s balance sheet also remains sturdy, with cash and short-term deposits of RM38.35 million against total borrowings of RM1.92 million.
Haily made its debut on the ACE Market of Bursa Securities on 21 July 2021. The Group is principally a main contractor involved in constructing residential and non-residential buildings in the Southern Region of Peninsular Malaysia, particularly Johor. It also provides construction machinery for rental purposes.