Malaysian property developer Ibraco Bhd, in collaboration with China Railway Group Ltd, has successfully secured a significant construction project valued at RM568.81 million. The project involves critical infrastructure works for the Kuching Urban Transportation System (KUTS), marking a significant step in enhancing the city’s transportation capabilities.
The joint venture comprises Ibraco, represented by its wholly-owned subsidiary Ibraco Construction Sdn Bhd (ICSB), along with China Railway units, China Railway Engineering Corp (M) Sdn Bhd, and Nanyang Tunnel Engineering Sdn Bhd. This powerful consortium emerged victorious in the competitive bidding process for the Blue Line Package 1 of the KUTS project, spanning from Rembus to Stutong.
KUTS is a comprehensive transportation initiative driven by Sarawak Metro Sdn Bhd (SMSB), aimed at revitalizing Kuching into a dynamic and highly competitive city. One of its primary objectives is to provide user-friendly mobility services throughout the Greater Kuching area, introducing autonomous rapid transit systems to enhance transportation efficiency and convenience.
In adherence to the terms of the collaboration, a joint venture (JV) company will be established to execute the KUTS infrastructure project. Details regarding the incorporation of the JV company will be made available at a later date. The project is slated for completion, with Stage 1 expected to conclude by December 31, 2025, and Stage 1A to be finalized by June 30, 2026.
Ibraco highlighted that the project will be funded through a combination of internally generated funds and external borrowings, positioning the company strategically to support this significant endeavor. It anticipates a positive impact on both earnings and net assets throughout the project’s duration. Importantly, the project will not have any bearing on the share capital or substantial shareholders’ shareholdings of Ibraco Group.
For the cumulative six months ending June 30, 2023, Ibraco achieved substantial financial growth, with net profit more than doubling to RM23.68 million compared to RM9.77 million in the corresponding period the previous year. The company reported a remarkable 32% increase in revenue, reaching RM168.6 million compared to RM127.78 million in the previous year.
As of the end of June this year, Ibraco boasted an unbilled sales figure of RM267.34 million and an outstanding order book valued at RM922.16 million, further underlining its financial strength and market position.