LCL bidding for RM2bil contracts

LCL bidding for RM2bil contracts
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By YVONNE TAN

BANGI: Interior fit-out specialist LCL Corp Bhd has submitted bids worth RM2bil and is confident of winning at least 15%, or RM300mil, of the amount bid for.

“The bids are mainly for overseas projects, with the Middle East making up about 70%, followed by India, Kazakhstan and Malaysia,” group managing director Low Chin Meng said.

The company's order book now is RM600mil and that will keep LCL busy for the next 18 months.

“The challenge this year is really for us to deliver,” Low said after the company AGM yesterday.

LCL expects about 70% of its revenue to come from overseas this year.

“We foresee this trend (of strong overseas contribution) to be a fixed trend, moving forward,” Low said, adding that the company was focused on the Middle East, India and Central Asian markets.

LCL is involved in interior construction, fit-out works, manufacture of generic and customised wooden furniture as well as supply and installation of metal fittings, fixtures, building materials and furniture trading.

Meanwhile, LCL announced that its proposed one-for-two bonus issue was approved in principle by Bursa Malaysia.

The bonus issue would be made in conjunction with its proposed transfer of listing from the Bursa second board to main board.

Low expressed confidence that LCL would continue to garner interest from foreign funds, given that the company was involved in a “sunrise industry” and enjoyed good growth potential.

He said Goldman Sachs, for example, had become a substantial shareholder in the company, holding a stake of more than 5%.

“I believe many more foreign funds would come in, as they believe in the potential of our industry and understand that it generates better margins that many other industries,” he said.