YFG gets RM235m Kajang contract, but loses Rembau job

PETALING JAYA: Practice Note 17 (PN 17) company YFG Bhd has bagged a RM235 million contract for the construction of apartments in Kajang, Selangor, but got its RM245 million sub-contract works for the PR1MA homes in Pedas, Rembau, Negri Sembilan terminated.
The electrical and mechanical engineering firm said in a filing with the stock exchange that its wholly owned subsidiary YFG Engineering Sdn Bhd had on Aug 14 received a letter of award from Pierre Suite (M) Sdn Bhd for the contract.
The project involves the building, and infrastructure and landscaping works of the proposed development of Eco Parkcity apartments. Its completion period is 36 months.
YFG expects the project to contribute positively to its revenue and earnings for the financial year ending Sept 30, 2018 and beyond.
Meanwhile, the group said in a separate filing that it had received a notice of termination from Wearegold Sdn Bhd (WRG) for the RM245 million contract awarded on Feb 16, as WRG is unable to participate in YFG’s proposed regularisation plan due to unforeseen reasons.
“In view of the foregoing, YFG and WRG hereby mutually agree to terminate the contract with immediate effect,” it noted.
YFG has been a PN 17 company since September 2015.
The stock closed unchanged at 5 sen yesterday, with some 620,700 shares changing hands. It has a market capitalisation of RM30.45 million.