Zecon Records Another Profitable Quarter

Kuala Lumpur, 26 November 2021- Zecon Berhad (‘Zecon’) announced its quarterly financial results ended 30 September 2021 with a Net Profit After Tax of RM9.42 million, deriving from RM234.2 million of Revenue, an increase of 270% as compared to the preceding quarter ended 30 June 2021.  In comparison, for the same quarter in 2020, RM79.3 million revenue was reported with Loss After Tax of RM6.76 million.

A 15-month cumulative total since 1 July 2020 (as a result of change in financial year end) saw the Group registering a revenue of RM562.4 million with a profit after tax of RM16.8 million.  A commendable effort during this slow Covid-19 recovery period.

On a quarterly basis, earnings per share stood at RM0.35 while losing per share for the 15-month cumulative period ending 30 September 2021, was RM2.28.

Zecon’s Pan Borneo Highway and Hospital Pakar Kanak-Kanak Universiti Kebangsaan Malaysia (HUKM) remain the main source of revenue in the quarter under review, contributing RM121.9 million and RM97.8 million respectively.  HUKM, the 243 beds specialist children hospital with 54 rooms hotel which commenced operation in April 2021, also bringing in RM29.5 million in interest income for the 3 months ended 30 September 2021.

HUKM, a private finance initiative project, started to contribute towards the Group’s overall cash flows through the gross inflow from the Availability And Maintenance Charges amounting to approximately RM11.7 million per month.  The said stream of cash flows shall continue throughout the concession period of 25.5 years which ends in mid-2046.

PAN BORNEO HIGHWAY

Zecon’s infrastructure project, the RM1.46 billion Pan Borneo Highway Phase 1 – Serian Roundabout To Pantu Junction was 94.89% physically completed as at 30 October 2021.  The Serian Roundabout section will be officially completed ahead of time by mid-December 2021 while the Pantu Junction section is expected to be fully completed in February 2022.

RM1.0 BILLION BOND

Zecon’s on-going corporate exercise, the proposed medium term Islamic Bond of up to RM1.0 billion is nearing completion with the issuance date set in the 2nd half of December 2021.  Part of the proceeds will be utilised to pay off existing loans, enhance liquidity and inject much needed cashflow into operations.

PROSPECTS

Zecon is actively participating in tenders for potential projects both in Sarawak and Semenanjung Malaysia.  Zecon has also been planning on a significant infrastructural project involving one of its strategically located lands.  Riding on the political stability in Sarawak and the State is gearing for State Election, the Group’s prospects remain very positive.

Zecon Berhad

BURSA Main Market

Since November 1997