PETALING JAYA, Feb 26 (Bernama) -- Vivocom Intl Holdings Berhad (Bursa stock code: 0069)’s transformation to becoming a formidable construction group is underway!
 
Announcing its financial quarter ended 31 December 2015 to Bursa Malaysia, Vivocom’s quarterly revenue surged to RM60.78 million, a four-fold increase from the RM13.97 million posted in the preceding year.
 
Consequently, quarterly group profit before tax soared to RM6.75 million, a reversal from the loss of RM565,000 previously.
 
The substantial increase in revenue was attributable to the consolidation of the results of the Group’s new subsidiary companies, Neata and Vivocom Enterprise Sdn Bhd (“VESB”). For the current financial quarter and current year-to-date, Neata and VESB contributed revenue of RM6.1 million and RM44.6 million respectively.

Please click here to download Financial Summary

CIMB Research in a report had described Vivocom akin to “Unleashing the Giant”, and had expected Vivocom to register RM7.8 million net profit for the year. Instead, Vivocom’s net profit climbed to RM8.4 million after accounting for non-controlling interests’ share of RM1.5 million, beating analysts’ estimates by some 7.7%!  
 
CIMB has a target price per share of 67 sen for Vivocom, giving rise to potential upside of almost triple the current level of approximately 24 sen.
 
Meanwhile, MIDF Research had described Vivocom as “New Silk Road Beneficiary” and values the company more conservatively at 59 sen per share.
 
“Vivocom is transforming into a serious player within the various segments of the construction value chain as it assumes the roles of project manager, main and sub-contractor. Vivocom is seen as a beneficiary of China’s massive FDI into emerging economies as part of their ‘New Silk Road’ development policy,” stated the report.
 
This bright outlook, added MIDF, stems from the company’s project management and sub-contractor business model, healthy financials and strategic position in construction value chain.
 
A copy of MIDF’s report can be accessed here.
 
Bumper year ahead!
 
Meanwhile, Vivocom executive director Choo Seng Choon expressed the Management’s appreciation to all Group employees for their commitment to the pursuit of excellence in Vivocom’s core businesses of construction, manufacturing and telecommunications solutions.
 
“We are pleased to report to shareholders that Vivocom is growing from strength to strength with an order book of RM1.054 billion,” said Choo.
 
Choo was speaking after returning to Kuala Lumpur from Hong Kong where he was a presenter for the Citigroup Infrastructure Investors roadshow.
 
On the construction front, the Vivocom Group has secured projects amounting to RM1.228 billion to date, including RM594 million from CRCC Malaysia.
 
Vivocom has a strategic relationship with CRCC Malaysia, a subsidiary of China’s construction behemoth China Railway Construction Corporation Ltd, and is their in-house contractor as well as their Project Delivery Partner in Malaysia.
 
Its recently awarded notable projects from CRCC Malaysia include a RM116 million project in Gombak and two projects totalling RM230 million related to the 1Gateway project in Klang and 1Pavilion Hilltop in Mont Kiara, Kuala Lumpur. In addition, the group has also secured potentially up to RM470 million with Coneff Corporation for developments in Sungei Besi.
 
These projects together with the company's current order book are expected to give a strong earnings visibility until end-2017 and beyond.
 
“Based on projects secured so far, Vivocom is confident of surpassing management targets it has set for itself for 2016,” said Choo. “Indeed, we strongly believe that 2016 will be a bumper year for the Vivocom Group.”
 
 
ISSUED BY VIVOCOM INTL HOLDINGS BERHAD

FOR MORE INFORMATION PLEASE CONTACT
Name: Choo Seng Choon, Executive Director
Email: info@instacom.com.my
 

--BERNAMA