KUALA LUMPUR (March 20): Leform Bhd has secured a project worth RM19.53 million to supply and install guardrails on section 11 of the West Coast Expressway (WCE), which is the last section of the WCE stretch.
The group’s 60%-owned subsidiary LF Engineering Sdn Bhd has on Monday (March 20) obtained the letter of acceptance and executed the subcontract agreement from IJM Construction Sdn Bhd, Leform said in a bourse filing.
IJM is the main contractor for the construction of section 11, which starts from the proposed Beruas Interchange and ends at Taiping South Interchange of WCE.
Leform said the subcontract, which will complete by August 30, is expected to contribute positively to the revenue, earnings and net assets of the group for the financial year ending Dec 31, 2023 (FY2023).
The manufacturer of steel products said the risk factors for the subcontract include dependency on the schedule of the implementation and progress of other subcontractors.
“Nonetheless, LF Engineering has, throughout the years, established its track record and expertise in undertaking such projects. As such, the board of directors believes that LF Engineering is able to mitigate the aforesaid risk factors,” Leform said.
In a separate statement, Leform managing director Law Kok Thye said this contract marks the group’s continuous effort towards securing projects since its listing on the ACE Market of Bursa Malaysia on Nov 30 last year.
“We believe this award also signifies a vote of confidence and trust by our business partners in the management, thus providing a huge encouragement for us to further strengthen our position,” Law wrote.
“We have no doubts in executing our expansion plan, which includes the construction of a new warehouse storage facility to scale up our storage area and operational efficiency while allowing us to expand our product variety to include thicker gauge steel pipes.”
Moving forward, Law said Leform’s capability to cater for higher production volume bodes well with the optimistic backdrop of the expected rising steel consumption driven by the recovery in manufacturing and construction industries.
Share price of Leform settled half a sen higher to 22 sen, bringing it a market capitalisation of RM318.42 million.
Source: TheEdge - 21 Mar 2023
