KUALA LUMPUR (May 17): Construction firm and bus operator Epicon Bhd (KL:EPICON) has secured a RM50 million sub-construction contract for structural reinforced concrete works.
In a filing with the bourse on Friday, the company said that its wholly-owned subsidiary Transnational Builder Sdn Bhd has received a letter of award from Axventure Sdn Bhd for this contract.
The contract entails structural reinforced concrete works for Towers 1 and 2 within a high-rise residential development located at Lot 82332 in Mukim Batu, off Jalan Segambut, Kuala Lumpur.
"With the addition of this new contract, the company's total outstanding order book has increased to RM979 million from the previously reported RM929 million," Epicon said.
The company anticipates that this contract will positively impact its earnings for the financial years ending December 31, 2024 and beyond.
Earlier in May, Epicon Bhd, formerly known as Konsortium Transnasional Bhd, announced that it had successfully regularised its financial condition and would be exiting Practice Note 17 (PN17) status.
As part of its regularisation plan, Epicon divested its express bus business, Park May Bhd, and its subsidiaries, known as PMB Group, to Nadicorp, resulting in a net gain of RM18.63 million. This transaction, completed in August 2023, involved a sale for RM1 along with a debt waiver of RM51.46 million.
Epicon's construction ventures, focusing on affordable residential housing and commercial properties, have become the main contributors to its earnings, representing 74.5% of its RM150.15 million revenue in FY2023. The remaining 25.5% was contributed by its transportation business, which operates 92 stage buses covering 27 routes in Seremban under the Cityliner brand.
In FY2023, Epicon recorded a net profit of RM68.21 million, compared to a net loss of RM11.26 million the previous year, attributed to its construction business and a one-off gain from the debt waiver and disposal of PMB Group. This marked the group’s first annual profit after consecutive periods of losses since FY2016.
Full-year revenue surged 98.4% to RM150.15 million from RM75.68 million previously.
Epicon's shares closed unchanged at 44 sen on Friday, valuing the company at RM261.61 million.