KUALA LUMPUR (Feb 2): Building support services provider KJTS Group Bhd has bagged a RM16.77 million contract from Thailand's Central World Hotel Co Ltd (Centara) to undertake retrofitting works as well as provide operation and maintenance (O&M) services and supply of chilled water at Centara Grand Hotel at Central World in Bangkok for 15 years.

KJTS said the venture is poised to bolster its position in the Thai market, reflecting the strategic focus on expanding its services and influence across Malaysia, Thailand and Singapore.

In a filing with Bursa Malaysia on Friday, KJTS said its Thai subsidiary KJTN Engineering Co Ltd had on Wednesday (Jan 31) signed an agreement with Centara for the proposed job.

Centara is part of the Central Group, one of Thailand's largest private commercial conglomerates, which has more than 50 subsidiaries with diverse investments in various corporations domestically and internationally.

"The total fixed fee for 15 years will be THB125.67 million (RM16.77 million). The retrofitting works are expected to be commenced on Feb 1, 2024 and to be completed on Nov 30, 2024. The O&M services and chilled water supply will commence on Dec 1, 2024 and be completed on Nov 30, 2039. The ownership interest in the chiller plant will be transferred to Centara at the end of the agreement," KJTS added.

The agreement will not have any effect on the group's share capital and shareholding structure, but is expected to contribute positively towards the earnings and net assets of KJTS until the expiration of the agreement.

"This agreement with Centara symbolises our commitment to expand our business in Thailand as one of KJTS Group's core regional markets. It also marks the start of an important business relationship for the KJTS group with the Central Group and we are hopeful that KJTS Group will be able to provide more building support services to the Central Group in the future," KJTN Engineering director Kitti Chungsawanant said in a separate statement.

Having recently debuted on the ACE Market of Bursa Malaysia on Jan 26, KJTS made an impressive start, closing at 50 sen on its maiden trading day, up 23 sen or 85.19% from its initial public offering (IPO) price of 27 sen.

The counter closed unchanged at 47.5 sen on Friday, giving the group a market capitalisation of RM326.8 million.