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TRC Synergy expects flat revenue growth in current financial year

TheEdge Wed, Jun 26, 2019 10:26am - 5 months ago


KUALA LUMPUR: TRC Synergy Bhd expects similar revenue growth in its current financial year ending Dec 31, 2019 (FY19), but foresees higher contribution from its property segment.

Speaking to the press after the group’s annual general meeting yesterday, TRC Synergy executive director Datuk Abdulaziz Mohamad said the group tendered for about RM5 billion worth of work in FY18, and secured nearly RM600 million — a success rate of 12%.

“This year we are looking at RM2 billion [for tender book]. We are not that big, so our target has always been conservative. We are looking at RM600 million to RM700 million turnover a year. Last year we achieved that, [so] this year we are having the same target as well,” he said, adding that this is because the group will be recognising more revenue from its property segment.

“Our joint-venture [property development] project with Prasarana Malaysia Bhd in Ara Damansara [in Petaling Jaya] has a gross development value of RM1 billion over the next five years,” he added.

Therefore, Abdulaziz said the group’s property segment would contribute up to 25% of the group’s total revenue, from 10% currently. Its construction business is the main revenue contributor.

In a statement yesterday, TRC Synergy managing director Tan Sri Sufri Mohd Zin said the group is well positioned for sustained growth with its unbilled order book in hand of about RM2.5 billion, and potentially new contract wins from Peninsular Malaysia as well as Sabah and Sarawak.

“At TRC, we still have plenty of room to grow, riding on the group’s proven track record and implementation capabilities throughout all these years to where we are as one of the key players, a force to be reckoned within the industry.

“With the many sizeable infrastructure projects that are coming on stream over the next few years, such as the ECRL (East Coast Rail Link), Coastal Road Project (Sarawak), Second Trunk Road Project (Sarawak), Sarawak Water-Grid project, Pan Borneo Sabah, just to name a few, and barring any unforeseen industry and market circumstances, the group is optimistic of the opportunities going forward,” said Sufri.








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