KUALA LUMPUR (Aug 23): Infrastructure and engineering solutions provider Jati Tinggi Group Bhd (KL:JTGROUP) said on Friday that it has secured a contract to install 33kV aluminium cross-linked polyethylene (XLPE) underground cables and accessories for asset development in Selangor worth RM39.9 million.
In a bourse filing, Jati Tinggi said its wholly-owned subsidiary Jati Tinggi Holding Sdn Bhd (JTHSB) has accepted a Letter of Award (LOA) for the job from YM Teras Sdn Bhd.
The contract is effective from the date of acceptance and is expected to be completed within 660 days from the acceptance date.
Under the contract, JTHSB is required to submit a performance bond and purchase insurance before the commencement of works.
"The LOA is expected to contribute positively to the future earnings, earnings per share and net assets per share of the company over the duration of the contract," the group said.
This is the fifth contract win for Jati Tinggi since it made its debut on the ACE Market of Bursa Malaysia last December.
Earlier this month, the company secured an engineering, procurement, construction and commissioning (EPCC) sub-contract worth RM33.8 million from Gamuda Bhd’s (KL:GAMUDA) wholly-owned subsidiary, Gamuda Engineering Sdn Bhd.
The counter dropped four sen or 7.41% to 50 sen on Friday, giving it a market capitalisation of RM194.05 million. However, it has gained 85.2% from its initial public offering price of 27 sen per share.