YTL Corp’s Managing Director Tan Sri Yeoh Sock Ping at the group’s AGM revealed that the company had secured a package from the RM8.9 billion Gemas-Johor Bahru electrified double-tracking railway project. However, no further details were disclosed as reported by the EdgeProp.
The project covers 191km in the southern region, from the state of Negeri Sembilan to Johor. The overall project was awarded to a consortium of three China-based companies — China Railway Construction Corp Ltd (CRCC), China Railway Engineering Corp (CREC) and China Communications Construction Co (CCCC). CRCC holds a 40% stake in the joint venture while CREC and CCCC each own 30%.
Analysts believe earnings from the package will be meaningful to the group’s bottom line moving forward.
MIDF Research said that even half a portion secured on the work packages would benefit the group’s construction revenues.
“Even if YTL scores just 50% of the work packages (or RM4.3 billion), the impact on its construction revenue and profit could be substantial. YTL’s construction revenue and earnings has been pretty dismal in the past few years and the Gemas-JB project win could easily more than quadruple YTL’s current order book of RM1 billion (comprising mostly internal jobs),” said MIDF Research in a note.