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- Phase 3 of the project comprises 34 three-storey units, including 20 semi-detached and 14 zero-lot houses. Phase 4 will involve 47 units consisting of 33 three-storey zero-lot houses, four bungalows, and 10 bungalows with half-basements.
KUALA LUMPUR (Oct 29): Construction group Kumpulan Kitacon Bhd has been awarded a contract worth RM86.58 million by Earth Pavilion Sdn Bhd to undertake the construction of residential units at The Mines Resort City in Selangor.
In a bourse filing on Tuesday, the group said its wholly-owned subsidiary, Kitacon Sdn Bhd, has accepted the letter of award for the main building works, which will cover two development phases on part of Lot 57738, Jalan Anggerik, within The Mines Resort City in the Petaling District.
Construction is scheduled to begin on Nov 1 and is expected to be completed within 24 months.
Phase 3 of the project comprises 34 three-storey units, including 20 semi-detached and 14 zero-lot houses. Phase 4 will involve 47 units consisting of 33 three-storey zero-lot houses, four bungalows, and 10 bungalows with half-basements.
Financial impact
Kitacon stated that while the contract will not affect the group’s share capital or ownership structure, it is expected to contribute positively to the company’s earnings and net assets per share for the financial year ending Dec 31 (FY2025) onwards until project completion.
The group recorded a net profit of RM26.41 million for the first half of FY2025, an increase of 9.9% from RM24.02 million a year earlier, driven by improved margins despite lower revenue. Revenue for the same period fell 12.5% year-on-year to RM413.34 million from RM472.3 million, as several ongoing projects neared completion while new ones were still at early stages.
Kitacon noted that potential risks associated with the project include changes in economic, political, or regulatory conditions, as well as operational challenges such as material shortages and labour constraints. The group said it will take appropriate measures to mitigate these risks.
The company added that none of its directors, major shareholders, or persons connected to them have any direct or indirect interest in the contract.
As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.
