Citaglobal Berhad Secures Major JKR Contract, Bolstering Order Book and Earnings Outlook
In a significant development for Malaysia’s engineering sector, Citaglobal Berhad has secured a RM168.88 million contract from the Public Works Department (JKR) to upgrade a 7.25-kilometre stretch of the Federal Route 3 (FT3) highway. This contract, awarded to Citaglobal’s wholly-owned subsidiary, Citaglobal Land Sdn Bhd, marks a pivotal expansion in the company’s order book, now valued at RM1.3 billion. The project, which involves transforming the existing single carriageway into a dual carriageway to JKR standards, is set to enhance connectivity along the Kota Bharu–Kuala Terengganu corridor.
The contract, which was competitively tendered, includes comprehensive upgrades such as widening roads, constructing six bridges, and developing five junctions. Additionally, the project encompasses earthworks, geotechnical works, drainage, road pavement, road furniture, traffic management, lighting, and other related works. The scope of this project underscores Citaglobal’s robust capabilities in civil engineering and construction, further solidifying its reputation as a premier player in the Malaysian market.
Citaglobal’s Executive Chairman and CEO, Tan Sri Mohd Norza Zakaria, expressed pride in the company’s selection by JKR, highlighting the competitive nature of the tender process. The successful bid, submitted in February 2025, follows JKR’s call for tenders in December 2024, demonstrating Citaglobal’s strategic foresight and readiness to capitalize on infrastructure opportunities.
The FT3 highway, stretching 739 kilometres from Rantau Panjang in Kelantan to Johor Bahru, is a critical artery for Malaysia’s transportation network. The upgrade project, expected to be completed within 42 months from the date of site possession, is part of a broader initiative to enhance the highway’s capacity and safety standards.
Financially, this contract is a boon for Citaglobal, extending the group’s earnings visibility over the next three years. With a market capitalization of 340.46 million MYR and a close price of 0.8 MYR as of August 19, 2025, the company’s strategic expansion into significant infrastructure projects is likely to bolster investor confidence. The price-to-earnings ratio of 21.66 reflects the market’s anticipation of Citaglobal’s growth trajectory, driven by its diversified portfolio and strategic project acquisitions.
As Citaglobal continues to leverage its expertise in sustainable energy solutions, particularly in offshore wind power generation, this infrastructure contract represents a complementary diversification of its business operations. The company’s commitment to sustainable development aligns with global energy demands and environmental considerations, positioning it as a forward-thinking entity in both the energy and infrastructure sectors.
In conclusion, Citaglobal Berhad’s recent contract win is a testament to its strategic acumen and operational excellence. As the company embarks on this ambitious project, stakeholders can anticipate enhanced financial performance and a reinforced market position, underscoring Citaglobal’s role as a key contributor to Malaysia’s infrastructure development.