The New Straits Times (NST) reported that Permaju Industries Bhd has won a construction contract worth about RM1.2 billion in the Seri Kembangan/Serdang area.
The contract is to undertake a massive property development project and it was awarded by a reputable developer.
The NST said Permaju will build more than 7,000 units of apartments over six to seven years.
The report did not mention how many towers there might be in this development but the tallest structure is over 50 floors.
Permaju will undertake the contract on a design and build structure and the whole project will generate about RM2.4 billion in gross development value.
According to the report, the project was approved last year but construction is starting only this year because of the slow market conditions.
Permaju is involved in the trading of motor vehicles, timber plantation, construction, and property development.
It has the expertise and the experience on how to handle construction jobs and property development as it has completed several projects.
Permaju has been actively looking for new business to diversify its earnings.
On April 7, Permaju said it is looking into bottling and distributing Penaclo, a Hong Kong firm’s sanitiser product, for the Southeast Asian market amid the Covid-19 pandemic.
Then on April 28, Permaju inked a memorandum of understanding with a local firm to sell the company’s air purification products to its customers in the automotive sector, citing exponential demand growth for the product. Last month Permaju told Bursa Malaysia that it has incorporated a company named Permaju Glove Sdn Bhd (PGSB) to venture into the glove manufacturing business.
The intended principal activity of PGSB is to manufacture, distribute, buy, sell and generally deal in rubber goods for industrial and commercial purposes and other related goods, wares and merchandise of every nature and description, it said.
There is still six months before 2020 ends and I am sure Permaju will make a few more announcements.
It would be interesting to know if new shareholders are coming in or whether any major global funds have been buying shares or raising their stake in Permaju.
Permaju is a counter to look at. While most analysts do not cover the stock, one or two whom I spoke to said they are keeping a personal watch on the counter.
So, let’s we see how it trades on Friday (July 17).
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