KUALA LUMPUR (June 6): Jati Tinggi Group Bhd (KL:JTGROUP) announced on Thursday that its 30% joint venture (JV) company has secured a RM25.55 million contract from Tenaga Nasional Bhd (KL:TENAGA) to install a 132kV underground double circuit cable for a semiconductor factory in Kuala Lumpur.

The contract period is for a year from May 31, said Jati Tinggi, which provides engineering services and solutions for underground and overhead utilities.

According to the group’s bourse filing, the 70:30 JV between Worktime Engineering Sdn Bhd (WESB) and Jati Tinggi’s wholly-owned unit Jati Tinggi Holding Sdn Bhd (JTHSB) must submit a performance security for the project within 56 days from May 31.

The contract is expected to contribute positively to Jati Tinggi’s future earnings, earnings per share and net assets per share over the duration of the contract, the group said.

For the first quarter ended Feb 29, 2024 (1QFY2024), Jati Tinggi reported a net profit of RM7.24 million on revenue of RM29.01 million.

Earnings for the quarter were driven by several key projects: installation of 132kV underground cables from Bayan Mutiara-Gelugor to The Light in Penang, double circuit underground cable works from Tun Razak Exchange to Cochrane substation, installation of 132kV underground and fibre optic cables from Batu Berendam to Texas Instrument Electronics in Melaka, and installation, testing, and commissioning of 33kV underground cables from Keteri South to Chuping Valley Industrial Area in Perlis.

Jati Tinggi, which made its debut on the ACE Market of Bursa Malaysia last December, closed up 1.5 sen or 4.41% at 35.5 sen on Thursday. This gives the group a market capitalisation of RM139.09 million.

The counter has gained over 31% against its initial public offer price of 27 sen.