Mitrajaya Holdings Bhd (KL: MITRA) has successfully secured a significant contract valued at RM37.91 million for the construction of a four-storey building with one level of sub-basement car park in Kuala Lumpur. The contract was awarded to Mitrajaya’s wholly-owned subsidiary, Pembinaan Mitrajaya Sdn Bhd, following a letter of award (LOA) from a local company on Tuesday.
Project Details and Timeline
The awarded contract involves the construction of a modern four-storey building complemented by a sub-basement car park, designed to accommodate the increasing demand for commercial and office space in Kuala Lumpur. The project is expected to commence on October 30, 2024, with an anticipated completion timeline of 21 months, targeting mid-2026 for its final handover.
Mitrajaya’s Recent Financial Performance
This new contract comes at a pivotal time for Mitrajaya Holdings, which has recently shown signs of financial recovery. After three consecutive loss-making quarters, the company turned around in the first quarter ended March 31, 2024 (1QFY2024), recording a modest net profit of RM262,000. This contract win is likely to further bolster the company’s financial position, providing a steady stream of revenue over the next two years.
Market Reaction and Company Valuation
Despite the positive news of securing a new contract, Mitrajaya’s shares closed one sen or 2.9% lower at 33.5 sen on the day of the announcement. This places the company’s market capitalization at RM260.01 million. The slight dip in share price could reflect broader market conditions or short-term investor reactions, but the contract win positions Mitrajaya for sustained growth in the near future.
Conclusion
The RM37.91 million contract is a significant milestone for Mitrajaya Holdings Bhd, particularly as the company works to strengthen its financial footing following a challenging period. With the construction industry in Kuala Lumpur continuing to thrive, this project not only reinforces Mitrajaya’s position as a key player in the sector but also supports its strategy to enhance shareholder value through strategic project acquisitions and successful project execution.
