TSR Capital Bhd (KL) has secured a RM75 million contract to undertake construction works at Elmina Business Park 2 in Gombak, Selangor, according to a bourse filing made on Wednesday. The contract was awarded to TSR Capital’s wholly-owned subsidiary, TSR Bina Sdn Bhd, by Sime Darby Property Bhd (KL).
The scope of the project involves extensive site clearance and earthworks, including erosion and sediment control, the construction of retaining and reinforced soil walls, as well as drainage and sewerage works.
The project is set to be completed over 18 months, with an expected delivery date of March 2026. This new contract will strengthen TSR Capital’s order book and is anticipated to positively impact its earnings and net assets per share for the financial years 2025 and 2026.
Impact on TSR Capital’s Performance
This latest contract adds to the company’s already impressive financial performance. For the financial year ended June 30, 2024 (FY2024), TSR Capital recorded a net profit of RM11.35 million, a substantial increase from RM1.37 million in FY2023. This surge in profit was driven by the completion of previous construction projects, the sale of an investment property, and ongoing contracts.
According to TSR Capital, this RM75 million deal will further enhance its existing order book and ensure sustained earnings growth in the coming years.
Strategic Importance of Elmina Business Park 2
Elmina Business Park 2, located in Gombak, Selangor, is a key commercial project developed by Sime Darby Property. The contract awarded to TSR Capital underscores the developer’s confidence in TSR’s construction expertise. The scope of the project, including critical infrastructure like erosion control and drainage systems, reflects the high standards set for the development.
The business park forms part of the larger City of Elmina, an integrated township that blends residential, commercial, and industrial spaces, positioning it as a crucial hub for Selangor’s business ecosystem.
Positive Market Outlook
Although TSR Capital’s share price dipped by 7.7% to 24 sen following the announcement, the company’s market capitalization stands at RM41.9 million. Despite this short-term fluctuation, the new contract positions TSR Capital for continued long-term growth, as evidenced by its strong financial performance in FY2024.
Looking ahead, the company’s continued ability to secure high-value contracts like the Elmina Business Park 2 project could bolster investor confidence and drive future share price appreciation.
In conclusion, TSR Capital’s involvement in the Elmina Business Park 2 project is a significant milestone in its growth strategy, ensuring a steady pipeline of projects that will contribute to its financial success in the years to come.
