Mass Rapid Transit Corp Sdn Bhd (MRT Corp) has awarded Mudajaya Corp Bhd the contract to build a viaduct gateway and other associated works worth RM558.64mil for the Klang Valley Mass Rapid Transit (KVMRT) Line 2 project.
Mudajaya Corp is a wholly owned subsidiary of construction company Mudajaya Group Bhd.
Construction schedule for the project – Package 207, which involves construction works from Universiti Putra Malaysia to Taman Pinggiran Putra in Putrajaya, is 56 months, staring from the date of the notice to proceed, the Star reported.
In its announcement in a stock exchange filing, Mudajaya indicated that it expected the project to contribute positively to the company’s earnings for the financial year ending 2017 onwards.
The company was among the subcontractors assigned to undertake construction works on the KVMRT Line 1 project.
Back in 2012, it was awarded an RM816.42mil contract for the construction and completion of the viaduct gateway and other associated works from Dataran Sunway Station to Section 17, Petaling Jaya.
The latest was it secured a letter of award from Consortium Zenith BUCG on Dec 2 to undertake the construction of package 2 of the Penang major roads and third link project worth RM810mil.
The new KVMRT contract award will be a timely boost for Mudajaya’s prospects, as the company seeks to replenish its outstanding RM1.3bil order book.
On Nov 30, CIMB Research downgraded Mudajaya’s rating to “reduce” from “hold” due to a weaker outlook, with the company facing concerns over sustained earnings and delay risks.
The research house currently has a fair value of 77 sen on Mudajaya’s shares.
The counter closed unchanged at 85 sen on Monday on a low trading volume of 189,500 shares.