KUALA LUMPUR (Aug 5): Infrastructure and engineering solutions provider Jati Tinggi Group Bhd (KL:JTGROUP) secured an engineering, procurement, construction, and commissioning (EPCC) sub-contract worth RM33.8 million from Gamuda’s wholly owned subsidiary, Gamuda Engineering Sdn Bhd (GESB).

In a filing, Jati Tinggi said the sub-contract was awarded to its unit Jati Tinggi Holding Sdn Bhd (JTHSB), to provide horizontal directional drilling work in Gombak, Selangor.

The duration of the contract is for 198 days, which shall commence on Aug 1, 2024 and be completed on Feb 15, 2025, the filing said.

Under the contract, JTHSB is required to deposit a performance bond amounting to 5% of the contract amount within 14 days of the contract's award date (Aug 5).

JTHSB is also required to purchase insurance such as the contractor’s all-risk and workmen compensation insurance before starting the project.

Jati Tinggi said that the contract is expected to contribute positively to its future earnings throughout the contract period.

This is the fourth contract win for Jati Tinggi which made its debut on the ACE Market of Bursa Malaysia last December.

Jati Tinggi dropped 7.5 sen or 14.6% at 44 sen on Monday, giving it a market capitalisation of RM184 million. The company’s initial public offer was priced at 27 sen per share.