KUALA LUMPUR (April 5): Haily Group Bhd has won a contract worth RM59.46 million for a terrace house construction project in Johor Bahru.

In a bourse filing on Friday, the company announced that the contract, awarded by Austin Senibong Development Sdn Bhd, involves the construction of 220 units of double-storey terrace houses and one unit of the main switch station.

Haily is expected to deliver two units of show houses and the switch station by Oct 21, 2024, in Section 1 and 218 units of double-storey terrace houses by Sept 21, 2025, in Section 2.

It said if the works are not completed by the stipulated completion date, liquidated damages will be calculated at RM1,000 per calendar day for Section 1 and RM50,000 per calendar day for Section 2.

Earlier in January, the company secured a contract worth RM45.8 million from Property Village Bhd for a housing project in Johor Bahru, as well as a contract worth RM32.33 million from Gunung Impian Development Sdn Bhd for a housing project in Skudai.

For the financial year ended Dec 31, 2023 (FY2023), the group reported a net profit of RM7.35 million, up 11% from RM6.6 million in FY2022. Annual revenue stood at RM295.58 million, up 50% from RM196.23 million.

It noted in its financial report that the gross profit margin declined to 8.9% in FY2023 from 12% in FY2022 due to increased building construction costs. 

Shares of Haily have been rallying in the past trading week, gaining 11 sen or 25.3% since March 28. It charted a new 29-month high of 54.5 sen on Wednesday (April 3). Year to date, the counter has gained 12.5 sen or 29.8%.

At Friday's close, its share price remained unchanged at 54.5 sen, valuing the group at RM97.2 million.