China Geo-Engineering Corporation Appoints JCI As Sub-Contractor For Hospital Expansion

China Geo-Engineering Corporation Appoints JCI As Sub-Contractor For Hospital Expansion

On 25 January 2018, Jiancheng International Group Limited (ASX: JCI), a company from capital goods industries which provides complete workforce solution for construction projects, announced that it had signed a labor services contract for the expansion of hospital facility in Al-Qassim, Saudi Arabia for approximately A$11.2 million. 

It is a first contract which JCI signed in Saudi Arabia. It demonstrates JCI’s commitment to its expansion of the market in “One Belt, One Road”. JCI also highlights its active projects in Algeria, Malaysia, Indonesia, and Bangladesh.

China Geo-Engineering Corporation (CGC) has appointed JCI as a sub-contractor. China Geo-Engineering Corporation is one of the first state state-owned enterprises for undertaking international contracting projects. China’s State Council has approved CGC for contracting international projects, and it ranks amongst top 150 international contractors by ENR.

JCI signing its first contract with CGC will lay a foundation for the company where it can have a long-term partnership. The partnership will also help in creating an opportunity where the company would be able to secure other projects in the region. The project will require local and overseas workers which include civil engineers, electricians, and stonemasons.

JCI has witnessed a negative performance change of 37.78 % since its official listing (23 March 2016). JCI shares have witnessed a downward trend over last one year, falling by 17.65%. However, the shares have recovered by 21.74% in last six months.

For the first half of the FY2018, which ended on 30 June 2018, the company’s revenue increased by 18.76% as compared to the previous corresponding period. It was A$40.13 million in the first half of FY2018. There was an increase in the net asset by 22.53%. JCI held a net asset of A$50.69 million by the end of the first half of the financial year 2018. There was a decrease in the net profit after tax by 1.69% as compared to the 1H FY2017. By the end of 1H FY2018, the net profit after tax was A$3.48 million. The work in hand increased by 42.54%.

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During the period, JCI completed multiple projects which include 600 units of house project in Algeria, College of Engineering & Petroleum under Kuwait University, Pellet project in Algeria, Prison project for 1,000 people Oran City in Algeria, 1050 residential units in Oran City in Algeria. The other projects include College of Science & Faculty Club under Kuwait University, Steel Plant in Malaysia Kuantan Industrial Park, Malaysia and lastly Industrial Park Road Project in Malaysia. During the period, JCI continues to expand across Malaysia, Algeria and Indonesia which includes Tube Machine Project in Malaysia, Sintering Project in Indonesia, Jijel Oil-Pressing Mill #14 block in Algeria and Belt Pipe Machine system in Algeria.

As per half year results of FY2018 which ended on 30 June 2018, JCI made a net profit of $3,481,542. JCI held a net asset base of $50,688,368. The net asset of JCI increased by 11.4% in 1H FY2018 as compared to 2H FY2017. The total shareholders’ equity was worth $50,688,368. By the end of the period, the company had net cash and cash equivalent of $2,323,515.

The shares of JCI traded last on 15 January 2019 at a closing price of A$0.560 with the market capitalization of A$35.97 million and PE ratio of 3.83x.


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