KUALA LUMPUR (Nov 20): Information technology products and services provider Mesiniaga Bhd has secured a RM38 million contract with the Royal Malaysian Customs Department (RMCD).
Mesiniaga officially signed and accepted the letter of award from RMCD for the provision of MYGST system maintenance services on Monday.
The contract is effective immediately and will be completed by October 2025, Mesiniaga said in its filing.
Mesiniaga jumped as much as 32 sen or 24.6% to RM1.62 on the news, before paring gains to RM1.47 — still up 17 sen or 13.08% at the time of writing — with 153,000 shares traded, for a market capitalisation of RM94.86 million. The counter is still down 9.3% this year.
This is the first contract announced by Mesiniaga this year. Its last win was back in December 2022, when it secured a contract worth RM43.62 million to develop and maintain the corporate registry system for the Companies Commission Malaysia.
The group turned to loss of RM792,000 in the first half ended June 30, 2023 (1HFY2023), from RM2.35 million net profit in the same period last year, with revenue down 12.6% to RM122.13 million from RM139.74 million, due to delayed project awards and completions.
It had net cash of RM13.02 million at end-June, on the back of short-term borrowings of RM12.56 million and long-term borrowings of RM413,000, against cash balances of RM26 million.