KUCHING: In a recent meeting with the Signature International Bhd (Signature), the research arm of TA Securities Holdings Bhd (TA Research) gathered that the group is tendering for the Battersea Phase 3A kitchen projects, involed in compulsory land acquisition and special dividend is in the making.
According to TA Research, management indicated that Signature has been invited to bid for kitchen work packages for Battersea phase 3A development.
“We understand that phase 3A development consists of 539 units of residential properties, which are targeted for completion in 2019.
“In a typical construction progress, kitchen jobs will usually start at the end of the construction cycle,” it said.
The research arm noted that as such, this Battersea project could serve to enhance Signature’s current year 2018 (CY18) (financial year 2018/2019 (FY18/19)) earnings visibility if the group can win in the job bidding process.
Having said that, TA Research was positive on Signature’s chance in securing the project, owing to the group’s stringent quality control and design standard.
“Furthermore, as the project will be priced in local currency, ie: British Pound, Signature may gain competitive advantage over other international peers should ringgit remain weak by then.
“Assuming the kitchen system is priced at 10,000 pounds each, the potential contract sum, which works out to RM31 million, will boost Signature’s orderbook from RM145 million as at February 2016 to RM176 million,” it added.
TA Research highlighted that other than Battersea, Signature is expected to secure other kitchen jobs worth RM30 million for six different property projects, which the letters of award are expected to be issued soon.
“Besides, the company continues to engage with Country Garden’s project teams on jobs verifications and clarifications although the job award has yet to be given to Signature,” it said.