PETALING JAYA: Ipmuda Bhd is claiming RM2.97 million from Ikhmas Jaya Group Bhd and its wholly owned subsidiary Ikhmas Jaya Sdn Bhd (IJSB) for failure to pay for the goods delivered.
The claim sum consists of principal amount of RM2.35 million and interest of RM627,153.
Ikhmas Jaya told Bursa Malaysia that the group and IJSB had been served a writ of summons and statement of claim dated Nov 30 by the solicitors of Ipmuda.
However, it believes the legal action will not have any material financial and operational impact for the financial year ending Dec 31, 2018.
Ikhmas Jaya and IJSB will appoint solicitors to defend the action and take all the necessary steps to ensure their rights are protected.
KUALA LUMPUR: The local market started Thursday’s session on a soft note but turned positive in the first few minutes of trade. Regional markets were mixed on Thursday as investors became unnerved over the latest development in the ongoing trade war. On the heels of China’s announcement of additional tariffs of 25% on US$16bil of US imports, analysts at ANZ highlighted reports that President Xi Jinping had asked China’s major oil companies to increase dometic output to safeguard the country’s energy security, Reuters reported. Oil prices were mixed with WTIRead More
KUALA LUMPUR (July 19): Construction and property stocks have rebounded amid increasing likelihood that the Kuala Lumpur-Singapore High Speed Rail (HSR) project is only deferred and not cancelled. Prime Minister Tun Dr Mahathir Mohamad was reported to have said that the project will have to be deferred because it will be difficult to reduce its price. Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng said “rumour has it that the mega infrastructure projects may come back”. “It was said earlier that the projects have been deferred. ThisRead More
KUALA LUMPUR (April 26): Based on corporate announcements and news flow today, companies in focus tomorrow (April 27) may include the following: Ikhmas Jaya Group…
KUALA LUMPUR: Ikhmas Jaya Group Bhd has secured a RM101.85 million contract for a flood mitigation project in Sungai Pendang, Kedah, from the irrigation and drainage department. The group said it accepted the letter of award from the government yesterday, with a formal contract to be executed at a later date. “The project consists of demolition and site clearance, piling works, upgrading of bridges, upstream works and improvement works,” Ikhmas Jaya said in a filing with Bursa Malaysia. It is expected to take 36 months to complete, beginning from theRead More
PETALING JAYA: AmInvestment Bank Bhd is cutting its earnings forecasts for Ikhmas Jaya Group Bhd for the financial years 2018, 2019 and 2020 by 34%, 14% and 13% respectively, largely to reflect weaker margins from older jobs.
In a note today, the research house said it also lowered its fair value by 14% to 61 sen from 71 sen previously, but maintained its “buy” call.
The research house said during a recent meeting, Ikhmas guided for weak margins in FY2018, noting it will see various projects secured during FY2015-2016 completed in FY2018.
AmInvestment said a number of these projects have been affected by delays, resulting in unbudgeted project management cost as well as input cost inflation beyond the original completion timelines.
“These additional costs are not immediately recoverable from the clients,” it added.
However, despite the weak margins, AmInvestment said it still projects Ikhmas’ net profit to grow by 55.3% in FY2018 from a washout in FY2017. Subsequently, it said improved margins should drive another 65.1% rise in net profit in FY2019.
On Monday, Ikhmas bagged two contracts worth RM257.7 million to develop Kajang Hospital by Naluri Rezeki Sdn Bhd and demolition of existing buildings, followed by substructure works by Putrajaya Ventures Sdn Bhd.
AmInvestment said the latest contracts have boosted Ikhmas’ year-to-date job wins to RM296.2 million, and its outstanding order book to RM890 million. In FY2018-2020, it said it kept its order book replenishment assumption of RM500 million annually.
Meanwhile, AmInvestment said Ikhmas guided for a strong pipeline of new jobs in FY18, and expects its job wins to rise to about RM400 million by the end of the first half of the year.
“It hinted at a sizeable public infrastructure job. For the second half of 2018 and beyond, similarly, Ikhmas has identified and will be pursuing various building, road, bridge and other infrastructure jobs worth RM500 million to RM1 billion,” it added.
The research house said it continues to like Ikhmas for the bright prospects of the piling/foundation segment backed by various mega projects; its strong earnings visibility underpinned by a sizeable order backlog; and the high entry barrier to the sector given the high costs of equipment and machinery and limited availability of experienced operators.
KUALA LUMPUR (April 10): Ikhmas Jaya Group Bhd shares surged 17.14% in early trade this morning after its wholly-owned Ikhmas Jaya Sdn Bhd secured two construction projects with a combined value of RM257.72 million. At 9.07am, Ikhmas Jaya rose 6 sen to 41 sen with 189,900 shares done. Under the first contract awarded by Naluri Rezeki Sdn Bhd, Ikhmas Jaya, as the appointed turnkey contractor, will design, construct, test, commission, maintain and complete upgrading works of the hospital within 36 months, on a design-and-build basis. The second contract — awardedRead More
*30 November 2017, Thursday* 😐 US Market : The Dow Jones industrial average closed at an all-time high on Wednesday as investors bet the U.S. economy’s momentum would continue. The U.S. economy has picked up steam this year, growing at an annualized rate of more than 3 percent each of the past two quarters. Europe Market : European stocks closed higher on average Wednesday after signs of progress with U.S. tax cuts and Brexit negotiations boosted sentiment. Precious Metal Gold : The price of gold fell on Wednesday, as upbeatRead More