Wednesday, October 10, 2007

PLS eyes more contracts

KUALA LUMPUR: Pembinaan Limbongan Setia Bhd (PLS) is confident of expanding its construction business with the receipt of a letter of intent early this year to design and build a RM100mil children’s ward in the Seremban Hospital.

Executive chairman Johar Salim Yahaya said PLS was also working hand in hand with its major shareholder, Kumpulan Prasarana Rakyat Johor Sdn Bhd, to secure projects in the Iskandar Development Region.

“We have tendered a few projects and are awaiting the results,” he told StarBiz after the company AGM and EGM recently.

PLS has diversified from timber, its main contributor to revenue, to include oil palm.

Johar Salim Yahaya
“About 30% of our sustainable forest plantation, mainly occupied by acacia, has been allocated for oil palm.

“We have planted 6% of it with oil palm which will bear fruit in five years and contribute to revenue,” said Lee Hun Kheng, executive director of PLS subsidiary Aramijaya Sdn Bhd.

PLS holds a 70% stake in Aramijaya, which operates a 60-year concession in about 35,000ha of sustainable forest plantation in Kota Tinggi, Johor.

Aramijaya had early this year secured a three-year contract to supply about 500,000 tonnes of woodchips to Japan. It is also exploring new markets such as the Middle East and China.

For the first quarter ended June 30, PLS recorded an improved net profit of RM906,000 on revenue of RM10.2mil, compared with RM600,000 and RM12.5mil respectively in the previous corresponding period.

Earnings per share rose to 1.06 sen from 0.44 sen previously.

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