Latest news with #HartanahKenyalang
The Sun
13 hours ago
- Business
- The Sun
Hartanah Kenyalang hopeful of securing more Sarawak infrastructure projects
KUALA LUMPUR: Sarawak-based building and infrastructure construction company Hartanah Kenyalang Bhd expects to secure 10% to 15% of projects with an aggregate contract value of RM451 million that it has tendered for by the end of 2025. 'Many of the projects are open tender, so there are many tenders involved. However, one of the projects related to power substation, I believe we will have a better chance (of securing),' managing director Seah Boon Tiat said after the listing of the company under the construction sector on the ACE Market of Bursa Malaysia today. He noted that Sarawak produces 3.5 gigawatts of green energy and this is expected to increase to 10 gigawatts in 2030. 'This energy will go to the substation, so our job here is tendering for substation projects and this will benefit our company. We have started tendering for these projects since last year,' Seah said. He added that the Sarawak government has allocated RM1 billion allocated for the development of bridges and road projects. 'Currently we are doing one project and have tendered for another one bridge project as well. It's a design and build type project ... so hopefully we have some chances to follow through with them,' he said. The company has also tendered for water projects in Sarawak, including water treatment plants. Hartanah Kenyalang made a muted debut on the ACE Market, opening at its initial public offering (IPO) price of 16 sen per share. Its share price closed at 14.5 sen. The company raised RM19.3 million through a public offering of 198.4 million shares, representing 32% of its enlarged share capital of 620 million shares. Its IPO was oversubscribed by 5.33 times. At listing, Hartanah Kenyalang's indicative market capitalisation was about RM99.2 million. Hartanah Kenyalang has recorded strong financial growth, with revenue increasing from RM34.1 million for financial year ended Oct 31, 2021 to RM127.6 million for financial year ended Oct 31, 2024, a compounded annual growth rate (CAGR) of 55%. During that period, profit after tax increased at a CAGR of 24%, growing from RM4.8 million to RM9.2 million. TA Securities Holdings Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent of Hartanah Kenyalang's IPO. 'Today, with RM19.3 million in funding raised from our IPO exercise, we are going to utilise approximately RM3 million of the IPO proceeds to purchase six new excavators in order to increase our capacity and productivity,' Seah said. 'We also plan to expand into offering design and build services for our building construction services segments and infrastructure construction services segments by investing in the Building Information Modelling (BIM) System.' Deputy managing director Seah Boon Kee said BIM helps architects coordinate their designs for a building, reduce errors of construction and speed up the process of construction. 'Thus far, we have one state archived project where we use BIM.'
Borneo Post
a day ago
- Business
- Borneo Post
Hartanah Kenyalang raises RM19.3 million from ACE Market debut
Boon Kee (fourth from left) and Boon Tiat (fifth from right) during the gong hitting ceremony in conjunction with Hartanah Kenyalang Berhad's ACE Market debut on Monday morning. KUCHING (June 9): Sarawak-based construction company Hartanah Kenyalang Berhad has successfully raised RM19.3 million through its initial public offering (IPO) on the ACE Market of Bursa Malaysia this morning. The stock opened at 16 sen, unchanged from its initial IPO price of 16 sen per share. Non-independent executive director and deputy managing director Seah Boon Kee said the company is satisfied with the debut despite ongoing global trade tensions. 'So far, it seems okay to us at this moment. Of course, the current market sentiment is affected by trade issues between two major global economies. 'But we believe this does not reflect the true value of our company. As the price is stable at this moment, so far so good,' he told reporters at a press conference after the listing. Hartanah Kenyalang is an investment holding company, while its wholly owned subsidiary, Hartanah Construction Sdn Bhd, provides building construction services focused on institutional and non-residential buildings and infrastructure works such as bridges and roads. The group has been operating in Sarawak's construction industry since 2010. Seah said the company's primary focus remains on government projects. 'We are mainly focusing on government contracts, especially from departments like Public Works Department (JKR), Sarawak Rural Water Supply Department (JBALB) and Sarawak Energy Berhad (SEB). 'We are also looking at other sectors (beyond government projects) to diversify our base, but the majority of our work still targets Sarawak government projects. 'Sarawak is booming right now, and we want to have this opportunity to grow together with Sarawak,' he said, adding that the group has no immediate plans to expand beyond Sarawak. 'Our concentration will still be in Sarawak for now,' he added. Managing director Seah Boon Tiat in a statement said the company sees strong prospects in the state as the Sarawak government has allocated around RM1 billion for the construction of roads and bridges to enhance infrastructure and connectivity. 'As of April 30, 2025, we have tendered for various projects worth a combined RM451 million. 'One of these is a bridge project using the design and build method, incorporating Building Information Modelling (BIM) into our operations. This will allow us to move up the construction value chain and improve our competitiveness,' he said. Ahead of the listing, Hartanah Kenyalang's shares saw strong demand from public investors with applications exceeding the available public portion by 5.33 times. From the RM19.3 million raised, RM3 million will go towards the purchase of six new excavators to boost capacity and productivity. RM10.5 million will be allocated for project working capital, mainly for payments to subcontractors and suppliers. Another RM2.1 million will be used to repay bank loans and RM3.8 million for listing expenses.
The Star
a day ago
- Business
- The Star
Hartanah Kenyalang debuts flat on ACE Market
KUALA LUMPUR: Sarawak-based construction services company Hartanah Kenyalang Bhd made its debut on Bursa Malaysia's ACE Market today, opening at 16 sen, unchanged from its issue price. The stock remained flat at 16 sen, with a total of 14.55 million shares traded as of 10:28 a.m. Hartanah Kenyalang's initial public offering (IPO) raised RM19.34mil. The company is allocating RM3mil from the proceeds to purchase new machineries and IT related hardware and software; RM10.5mil for project working capital; RM2.1mil for loan repayment and RM3.8mil for listing expenses. In the first quarter ended Jan 31, Hartanah Kenyalang posted a net profit of RM1.9mil, or earnings per share of 0.38 sen on revenue of RM44.8mil.
New Straits Times
20-05-2025
- Business
- New Straits Times
Hartanah Kenyalang poised for growth amid Sarawak infrastructure boom
KUALA LUMPUR: Hartanah Kenyalang Bhd's earnings are expected to grow at a two-year compound annual growth rate (CAGR) of 16 per cent, according to Public Investment Bank Bhd (PublicInvest). In a note, the firm said this will be supported by a robust order book and continued government infrastructure spending in Sarawak. "We derive a fair value of RM0.22 by applying 11 times the forecast price-to-earnings ratio (PER) for financial year 2026 (FY26), which represents an approximately 20 per cent discount to the forward PE multiple of 14 times for Bursa's Construction Index. "This account for the group's positive outlook but relatively smaller scale of business," it noted. Going forward, PublicInvest said key downside risks for the group include dependency on government spending in Sarawak, competition, and reliance on labour and subcontractors. Hartanah Kenyalang is a Sarawak-based construction services firm, well-positioned to benefit from steady construction growth in the state. Through its subsidiary, the group is principally involved in building construction services, focusing on institutional buildings such as schools and other public buildings, as well as other non-residential buildings, and infrastructure construction services, particularly bridges and roads. According to PublicInvest, the group is qualified to undertake high-value building and infrastructure construction services for government projects, mainly for public buildings, bridges and roads in Sarawak. The group plans to capitalise on Sarawak's RM10.9 billion development budget for 2025 and continue bidding for public sector projects, including schools and other purpose-built buildings, high-rise buildings, bridges, roads, and substations. Besides enhancing operational capacity and efficiency, the group also aims to expand its design and build services through building information modelling (BIM) investment. Between FY21 and FY24, Hartanah Kenyalang's net profit increased from RM4.8 million to RM9.2 million, registering a CAGR of 24 per cent in line with higher revenue. However, the net profit margin declined from 14 per cent in FY22 to seven per cent in FY24, while the gross profit margin decreased from 24 per cent in FY21 to 18 per cent over the same period. The decline was primarily due to the completion of the higher-margin Pan Borneo Highway Project, coupled with rising costs for construction materials, subcontractors, staff costs, finance costs and other operating expenses. The group is seeking a listing with an enlarged issued and paid-up share capital of 620 million shares on Bursa Malaysia's ACE Market. Pursuant to the initial public offering (IPO) listing, the group's market capitalisation is RM99.2 million based on its IPO price of 16 sen.
Borneo Post
30-04-2025
- Business
- Borneo Post
IPO proceeds to boost Hartanah Kenyalang's assets, orderbook
Seah (centre) speaks during the press conference after the prospectus launch today. KUCHING (April 30): Hartanah Kenyalang Bhd (Hartanah Kenyalang) will utilise proceeds from its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia to expand its assets, in addition to expanding its design and build services. Hartanah Kenyalang is principally an investment holding company, while its subsidiary, Hartanah Construction Sdn Bhd, is involved in building construction services, with a focus on institutional buildings such as schools and other public buildings, and other non-residential buildings; as well as infrastructure construction services, with a focus on bridges and roads. Against the backdrop of growth prospect in Sarawak's construction sector, its managing director Seah Boon Tiat said Hartanah Kenyalang plans to utilise part of the proceeds from IPO exercise to purchase six new excavators to replace some of its older excavators in order to increase our capacity and productivity. 'In addition, we also plan to expand into offering design and build services for our building construction services segments and infrastructure construction services segments by investing in Building Information Modelling system (BIM),' he said during a press conference after its prospectus launch earlier today. BIM is a technology that can digitise various aspects of a construction project, enabling seamless collaboration among project owners, architects, consultants, engineers and contractors by using a 3-dimensional model. As at 30 April 2025, Seah said Hartanah Kenyalang has tendered for various building and infrastructure construction projects with an aggregate contract value of RM451 million, of which RM311 million is in respect of a design and build construction project. its current orderbook stands at some RM150 million, he said. 'By expanding our design and build services, we are confident that this strategic move will enable us to climb up the construction industry's value chain and to increase our overall competitiveness in the marketplace,' he added. To note, the group has 11 years of operating history in the construction industry in Sarawak since commencing business operations in 2010. Among the ongoing construction projects currently undertaken by the group include the construction of the State Archive building in Kuching; construction of school buildings and related facilities for Yayasan International School in Sibu and Kuching; construction of two dilapidated school buildings and related facilities, namely SK Tambay in Kota Samarahan and SK Kujang Mawang in Serian; as well as the construction of the Sebauh Bridge in Bintulu as a rescue contractor. The group has also undertaken a construction project in the neighbouring state of Sabah where the Group is involved in the construction of the Sg Padas Bridge in Tenom. Among the construction projects completed by the group in the past include the construction of six dilapidated schools at various locations in Sarawak; construction of commercial shophouses for Samariang Square in Petrajaya, Kuching; infrastructure works for the Pan Borneo Highway from Serian to Pantu Junction in Sarawak; construction of commercial shophouses at Jalan Matang, Kuching; and provision of piling works for the Kuching International Airport Hanger in Kuching. assets Hartanah Kenyalang Bhd IPO lead orderbook
