Nestcon wins RM161 million construction contract in Gombak

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Nestcon wins Gombak contract

Highlights

Nestcon Builders Sdn Bhd has secured a RM161 million main construction contract in Gombak from BU Developments Sdn Bhd, running from 2 Nov 2026 to 1 Sept 2029.
So far this year, Nestcon has secured three major contracts worth a total of RM478.52 million, including RM74.52 million from Exsim MX4 Sdn Bhd and RM243 million from Exsim Waterfront Sdn Bhd.
For the six months ended 30 Jun 2026, Nestcon's net profit more than doubled to RM12.68 million, while revenue rose 14.5% to RM391.5 million.

This article was translated from the original. Read the original version by our correspondent here.

Contract details and implementation schedule

As reported by The Edge Malaysia, citing Bursa Malaysia, the contract was awarded by property developer BU Developments Sdn Bhd to Nestcon's wholly owned subsidiary, Nestcon Builders Sdn Bhd. The group's filing on Friday stated that Nestcon Builders will carry out the main building works in accordance with the additional terms and conditions set out in the letter of award.

The contract period is 34 months, with work starting on 2 Nov 2026 and scheduled for completion on 1 Sept 2029. The defect liability period is set at 30 months from the date specified in the practical completion certificate for the main building works.

Impact on order book and group performance

So far this year, Nestcon has secured three major construction contracts with a combined value of RM478.52 million. The latest contract follows two awards from Exsim-related companies in August, including a RM74.52 million contract from Exsim MX4 Sdn Bhd to build apartments in Kwasa Damansara, Selangor, and a RM243 million contract from Exsim Waterfront Sdn Bhd to build a serviced apartment block in George Town, Penang.

For the six months ended 30 Jun 2026, Nestcon's net profit more than doubled from the same period a year earlier to RM12.68 million, while revenue rose 14.5% to RM391.5 million. The group attributed the stronger performance to higher construction activity during the period under review, while its shares closed down one sen, or 2.2%, at 44.5 sen on Friday, giving it a market value of about RM346.7 million.

In our earlier article on the Amora Serviced Residence project in Tampoi, Johor Bahru, we explored the partnership between Astaka Padu Sdn Bhd and Kimlun Corporation Bhd to develop a project with a gross development value of RM450 million. We also highlighted details of the Amora Park integrated master plan, including its two-tower development comprising 617 serviced apartments and market demand, demonstrated by the rapid sellout of its shop-office units.

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