Cresbld ... Oct12

It has its eyes set on the rm3.7 billion Langat 2 water treatment plant and is currently (Sept 2012) negotiating with potential partners to submit a bid for the project.


Crest has been known for its high rise construction operations but had made headlines after successfully securing the rm1.04 billion Dang Wangi LRT station redevelopment project and the rm1.33 billion development of the Malaysian Rubber Board's land in Jln Ampang.

The two developments have got investors warming up to Crest Builder as the potential earnings are huge relative to the company's current market cap of rm136 million. The experienced builder is also expected to gain from construction earnings as the two projects will double its current construction order book of rm1.1 billion.

The group has also put in several other bids for smaller water treatment and sewerage plants as part of its plans to venture into infra construction.

The Langat 2 project has been riddled with delays when initial works hit a snag in April 2012 after the Selangor government refused to issue the remaining development orders.

However PPAB hopes to secure the necessary approvals by June 2013. The tender process is slated to close Nov 20, 2012.

The Yong's family owns a 31.9% stake in Crest Builder.

Potential newsflow like awarded of other's rail plus related projects could provide the share price with catalysts as well.

The company is targeting to secure two more property development deals in the Klang Valley soon.