Tuesday, August 30, 2005

Naim Cendera - The New Sarawak Construction King

The construction industry has been contracting drastically over the last two years, and governments projects are running dry. Contractors can be forgiven for getting paranoid and may have to look into possible overseas action.

It is expected that the third quarter and fourth quarter economic results will fare no better than the second quarter of the year, and thus we should see far greater contraction.

In this weak economic environment, there stands out a company in Sarawak who has the ability to sustain their business, and are confidently projecting to generate 30% growth over the next three years.

The industry is ushering a new king of construction - Naim Cendera Sdn Bhd, a wholly owned subsidiary of Naim Cendera Holding Bhd (NAIM) - reported that they had been recently awarded three contracts by the Federal and State government of Sarawak for infrastructure and building projects worth RM507.5 million.

The projects awarded include the bridge over Batang Belingian (contract value of RM35 million), the new Sarawak State Assembly building (DUN) worth RM296 million, and the upgrading of the Julau-Sibu Road which is RM176.5 million.

Naim is expecting another award for the Pasukan Gerakan Am project at Batu Kawa in Kuching which is expected to be about RM313 million and has also received a Letter of Intent (LOI) for the proposed Bengoh Dam which is also worth hundreds of millions.
In addition, Naim also is developing a 100-acre mixed development project at Sungei Kuap in Kuching and has other property development projects in Miri, Kuching, etc.

Currently, Naim’s value of confirmed order book is more than RM1.252 billion which may be sufficient to sustain its business earnings for the next three to four years and this book order is expected to be enhanced in the next few months.

Naim’s chairman, Datuk Abdul Hamed Sepawi is confident that the group is capable to maintain a cumulative average growth rate of more than 30% over the next three years.

Naim is poised to be the next kingpin of the construction industry surpassing former greats such as Gamuda, MMC, Roadbuilders, Ho Hup, Suncon, MTD, Mitrajaya, Binapuri and IJM.

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