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August 14, 2017

YFG bags RM235m apartment job but loses RM245m PR1MA project

KUALA LUMPUR (Aug 14): Practice Note 17 (PN17) company YFG Bhd has bagged a RM235 million contract to build apartments in Kajang, Selangor, but lost the RM245 million sub-contract for PR1MA (1Malaysia People’s Housing) Homes in Pedas, Rembau, Negeri Sembilan.

The PR1MA project, which was awarded to YFG on Feb 16, was terminated by Wearegold Sdn Bhd (WRG) as the latter is not able to take part in its proposed regularalisation plan due to unforeseen reasons, it said in a Bursa Malaysia filing today.

“In view of the foregoing, YFG and WRG hereby mutually agree to terminate the contract with immediate effect. This termination is not expected to have any material effect on the earnings, net assets and gearing of the company and the group for the financial year ending Sept 30, 2017 (FY17) as the project did not commence,” it said.

If the project had taken took off, it would have involved the construction of 1,572 single and double-storey link houses and contributed positively to its FY17.

Meanwhile, the Kajang apartment project, which involves the building, and infrastructure and landscaping works for the proposed development, is expected contribute positively to its revenue and earnings for FY18 and beyond.

YFG said its wholly-owned subsidiary YFG Engineering Sdn Bhd got the Letter of Award from Pierre Suite (M) Sdn Bhd for the project today.

It added that the project would start on a date to be notified in writing by Pierre Suite and to be completed within 36 months from the commencement date.

[The Edge Markets]

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