KUALA LUMPUR (Dec 1): Tuju Setia Bhd (KL:TJSETIA) has won a major RM420 million construction contract from Sunway Bhd (KL:SUNWAY), a deal that is nearly six times Tuju Setia’s market capitalisation of RM62.73 million.
According to its bourse filing, the newly awarded job forms part of the upcoming Sunway Cochrane mixed development, which will feature two serviced apartment towers complete with rooftop facilities, a seven-storey podium hosting retail components, and a dedicated link bridge connecting directly to the Cochrane MRT station.
This type of transit-oriented project continues to elevate demand for commercial and investment-grade properties around Kuala Lumpur, especially in rapidly developing corridors.
Tuju Setia’s share price closed unchanged at 18 sen on Monday, valuing the construction group at RM62.73 million. The counter remains down more than 30% year-to-date.
The RM420 million contract carries a 40-month duration and is slated to begin on March 1, 2026. Tuju Setia said the project will contribute positively to earnings and net asset per share from FY2026 until the project reaches completion. This aligns with the broader trend of strong construction activity supporting the industrial and commercial real estate sector in the Klang Valley, particularly in KL and Selangor.
The win comes shortly after its subsidiary, Pembinaan Tuju Setia, secured a RM54 million contract to build a five-storey factory in Klang for Syntec Intelligence Technology Sdn Bhd — further demonstrating ongoing demand for purpose-built industrial facilities in Selangor.
As of end-September, the group’s unbilled order book stood at RM1.82 billion, offering strong earnings visibility through FY2028 as construction demand continues to support both residential and commercial property development pipelines in Kuala Lumpur.
For the third quarter ended Sept 30, 2025, Tuju Setia reported a 16.76% year-on-year increase in net profit to RM1.59 million, supported by higher progress billings and improved margins from contracts secured in 2024. Revenue for the quarter rose 10.9% to RM142.68 million.
However, cumulative nine-month net profit declined 14.8% to RM3.17 million, due to the absence of a one-off RM2.94 million disposal gain recorded in the previous year. Revenue for the period inched up 1.03% to RM396.26 million.
With robust project wins and a sizable pipeline, Tuju Setia remains well-positioned as construction momentum continues to underpin KL and Selangor’s commercial and industrial property landscape, particularly in key growth locations with strong transportation links.
