Central Global Bhd Secured Super Sized Construction Contract!!

Following our previous writing, Central Global Bhd (CGB) had successfully secured a very big size contract which will change the fundamentals of the company going forward.

Just today, CGB accepted a Letter of Award (LoA) from Pembinaan Urusmesra Sdn Bhd, for a significant contract valued at RM616.4 million for the construction work of Pan Borneo Sabah Phase 1B (Lahad Datu — Kg. Sandau) Work Package 22.

This contract is expected to start by 30 September 2024 and end by 29 March 2028.

What’s more important is that CGB’s order book had increased significantly to RM751.5 million, which will be recognised for the next few years. Moreover, their tenderbook is estimated to be around RM3.7 billion.

For information, a total of 15 out of 19 work packages for Phase 1B of Pan Borneo will be announced in Q3 2024, where CGB could have a chance to benefit from this significant development valued at approximately RM14.0 billion.