KUB's Coup De Grace

KUB has dealt a deft masterstroke coup de grace by clinching 40% of a joint venture that would build and operate a 100 km inter-city transit system in Iskandariah with connections to metropolitan Singapore.

This project is   worth over RM1 billion and  is to be completed over 24 months. The concession period is 25 years.

Masteel and KUB has entered into a Joint Venture Agreement where Masteel and KUB would hold 60% and 40% equity stakes respectively in the JV company, Metropolitan Commuter Network Sdn Bhd.

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Iskandar Malaysia is a huge regional development of the Federal government with an allocation of RM6.83 billion for its development.

Three years since its turnaround in 2008, KUB is focused on the   Property, Engineering & Construction (PEC) side of the contracting income for the immediate term while at the same time to grow its recurring income base.

This project will serve KUB Group not only in the Construction area, but IBS supply on Kempas Baru Development and Facility Management as well, being part of our PEC sector. KUB’s ICT sector will also benefit from the integrated IT systems on ticketing, collection and security.

The project has two components: the “Build-Transfer” of the rail transit infrastructure, and the “Own-Operate” of the inter-city train system. The project is to be undertaken in 3 phases, and expected to be completed within 24 months from project commencement.

The building of the rail transit infrastructure would also be funded by project financing under the Public-Private Partnership scheme (PPP).

KUB Malaysia Berhad is an investment holding company Malaysia, operating in the core business of Information, Communications & Technology (ICT), Property, Engineering & Construction (PEC) and Food-Related Industries.

In the area of PEC, KUB has spread its involvement in the government as well as private projects, amongst others, residential housing projects, vocational and industrial training institute, hospitals, schools, health and nursing Colleges, industrial and high rise buildings. Actively involved in the Industrialized Building System (IBS), KUB also own an IBS manufacturing facility located in Senawang, Negeri Sembilan, which has the capacity to produce 60,000m3 per year of Pre-fabricated Concrete Component such as Precast Columns, Beams, Walls and Staircases as well as 600,000m2 per year of Hollow Core Floor Slabs.

Leveraging on the experience from the PEC sector, KUB has continued to nurture and harness exposure from the experience in facilities management as a strategic platform to upscale its existing FM business through its Total Comprehensive Facilities Maintenance and Management Services.

In the area of ICT, KUB is moving up the value chain to position itself as a total ICT solution provider in Malaysia. Ranked as one of Malaysia’s most prolific ICT companies, KUB’s range of communication services include integrated solution in broadcasting and telecommunication, telecommunication network service and systems engineering services. 

Positioned as a specialist provider to Managed IT Services with its own in-house developed product called Probit, KUB also provides specialized services in systems integration; support and maintenance services, consultancy and IT project management.

The major shareholders of KUB are Gaya Edisi Sdn Bhd and Minister of Finance currently holds approximately 29.62% and 22.55% respectively.

Looks like KUB is going great guns. 

So watch KUB closely as it may just do a spirited run. It touched 92 sen today and may just hop, skip and jump beyond RM1 very soon if fortune star favours KUB.