KUALA LUMPUR, March 26 (Bernama) --
Construction player Vivocom Int’l Holdings Berhad, through its subsidiary company namely Vivocom Enterprise Sdn Bhd, today executed a Head of Agreement for the proposed collaboration with Shanghai Civil Engineering Group Co Ltd (CREC Shanghai).
The HOA is intended for both parties to collaborate for the purposes of procuring development, construction and infrastructure projects in Malaysia. The aforesaid agreement will facilitate both parties in regulating their relationship in relation to said projects as procured by the parties.
Based on the HOA, the relationship between both parties in any project is one of potential main or prime contractor / owner and sub-contractor / project management consultant and may be interchangeable between the parties as may be mutually agreed from time to time on a per-project basis.
The board of directors of Vivocom Int’l views the proposed collaboration favourably and augurs well for the company as it paves the way forward for both parties to tender and undertake projects on a joint basis. The agreement further allows Vivocom to tap on the technical expertise and capabilities of CREC Shanghai and leverage upon the Shanghai Group’s financial strength and reputation.
According to Vivocom executive director Dato Amin Shaharudin, following the HOA with CREC Shanghai, Vivocom Int’l will now seek to bid for larger scale, more ambitious development, construction and infrastructure projects throughout Malaysia, especially within the Government sector.
Dato Amin said: “We are indeed honoured and delighted to have been selected as CREC Shanghai’s business partner in Malaysia and together will endeavour to grow our business exponentially into the foreseeable future”.
CREC Shanghai was established under the restructuring strategy of China Railway Group Limited (CREC). As a comprehensive service-based construction group, CREC Shanghai owns total assets of CNY 14.8 billion, with fixed assets valued at CNY1.78 billion. It has 12 wholly-owned subsidiaries, a branch company, 9 regional marketing offices and 5 operative offices. The company also boasts 4,909 professionals of various expertise areas in addition to 3,100 skilled staff.
As a comprehensive construction service supplier featuring advanced technologies and management, CREC Shanghai is registered with Premium Grade Qualification of General Contracting for Railway and Real Estate projects, First Grade Qualification of General Contracting for Road, Municipal and Mechanical & Electrical Installation Project, First Grade Qualification of Specialized Contracting for Bridge, Tunnel, Road Subgrade, Railway Tracklaying & Girder Building and Steel structure Project Qualification of Specialized Contracting for Urban Rail Transit Project. CREC Shanghai is also dedicated to financing and investment operations as related to construction projects.
According to Dato Amin, Vivocom is proud to have CREC Shanghai as its partner in Malaysia as there is no doubt as to the China Group’s vast experience, cumulative expertise, proven track record and financial might as proven by its ranking as “one of the world’s top 500 enterprises and brand names”.
According to CREC Shanghai’s website, under the development of the national policy of “One Belt One Road” and its own Shanghai-based and world-oriented development policy, CREC Shanghai since its establishment, strives to explore the international market. To date, the Group already has several construction projects underway in Malaysia, helping to deliver sustainable development in the region.
CREC Shanghai (Malaysia) CEO Shao Xianhu said: “We shall continue our quest with Vivocom in Malaysia and together we would like to build a successful and auspicious future together. We are looking forward to a successful and profitable partnership going forward with Vivocom”.
For its unaudited fourth quarter results ended 31 December 2017, Vivocom recorded a Revenue and Profit After Tax of RM 181.73 million and RM 20.48 million respectively. The share price closed at RM0.07 as at 23 March 2017. Its order book stood at RM503.56 million and gives it earning visibility for the next 2-3 years. At current share price, Vivocom remains the perfect bargain entry for investors seeking investments in construction sector stock. Source : VIVOCOM INTL HOLDINGS BERHAD
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