KUALA LUMPUR (Jan 21): Pansar Bhd (KL:PANSAR) has secured a RM477.69 million highway construction job from the Sarawak Public Works Department.

The contract, awarded to its wholly owned subsidiary Perbena Emas Sdn Bhd via an invited tender, involves the design and construction of the Serian-Gedong-Samarahan dual carriageway highway.

Specifically, this is for Package 1 (Simpang Rayang/Munggu Kopi/Tanah Puteh/Sebemban to Gedong District), focusing on Section 1B, which entails a new road from Simpang Tanah Puteh to Gedong Isthmus, according to its bourse filing on Tuesday.

The scope of work includes the development of an 8.5km of a new four-lane dual carriageway, including two bridges, an autonomous rail transit (ART) reserve, bicycle tracks, utility corridors, road lighting, road furniture, and signage.

The project is slated to commence in February 2025 and will take 36 months to complete.

It is worth noting that the contract value actually exceeds Pansar’s current market capitalisation of RM291.4 million, based on the company’s closing share price of 57 sen on Tuesday. The stock was traded unchanged for the day.

According to Pansar, the contract is expected to contribute positively to the company’s earnings and net assets throughout the project period.

Pansar is a supplier and service provider of marine and industrial engineering products, construction and building materials, wood engineering equipment, and electrical and office automation products.

Datuk James Tai Cheong, also known as Tai Chiong, is Pansar's largest shareholder, holding a 59.85% stake through Pan Sarawak Holdings Sdn Bhd. He serves as non-independent non-executive chairman of the company, according to the company’s annual report.

Financially, Pansar’s net profit grew 29.54% to RM8.25 million for the second quarter ended Sept 30, 2024, up from RM6.37 million in the same period a year earlier, driven by higher other income.

Quarterly revenue, however, dipped 6.7% year-on-year to RM263.43 million due to lower contributions from its building and material construction segment following the completion of a previous infrastructure project.

As of end September 2024, the company had RM21.4 million in deposits, cash and bank balances compared to RM261.86 million in short-term borrowings.