KUALA LUMPUR (Aug 30): Pansar Bhd (KL:PANSAR) has clinched an RM804.7 million contract for the Kuching Urban Transportation System (KUTS) Blue-Line Package 2 in Sarawak.
The contract was awarded to Pansar's wholly-owned Perbena Emas Sdn Bhd (PESB), in collaboration with China Road & Bridge Corporation (CBRC). The award came through a letter of acceptance from Sarawak Metro Sdn Bhd (SMSB), which is wholly-owned by Sarawak Economic Development Corp.
The project entails construction of the infrastructure and associated works for the KUTS Blue Line that covers the stretch from Stutong to Hikmah Exchange. The scope includes architectural design, mechanical and electrical works, as well as external and landscape development for the stations. Additionally, it involves roadworks, viaduct construction, crossings, road widening, and both relocation and utilities protection.
“The KUTS project will transform Kuching into a dynamic and competitive city with the provision of green and efficient public transportation services. Being the first hydrogen-powered urban transportation system to be implemented in Malaysia, KUTS also reflects Sarawak's government's strong commitment toward green energy and environmental sustainability,” said Pansar in a stock exchange.
According to Pansar, the project was awarded through an open tender, as advertised by SMSB on April 23. With this contract, PESB and CRBC will form a joint venture to execute the project.
The contract value is significantly higher than Pansar’s current market capitalisation of RM290.1 million, based on the Main Market-listed company's closing share price of 57 sen on Friday. The stock was unchanged for the day and is down over 16% year to date.
The contract, effective from Sept 3, is expected to contribute positively to the group’s future earnings and net assets.
Pansar is a supplier and service provider of marine and industrial engineering products, construction and building materials, wood engineering equipment, and electrical and office automation products.
Datuk James Tai Cheong, also known as Tai Chiong, is Pansar's largest shareholder, holding a 59.25% stake through Pan Sarawak Holdings Sdn Bhd. He serves as non-independent non-executive chairman of the company.
Financially, Pansar reported a slight decline in net profit for the first quarter ended June 30, 2024 (1QFY2025), slipping 0.13% to RM6.88 million from RM6.89 million the previous year. Revenue fell to RM244.39 million from RM269.21 million, primarily due to reduced contributions from the building and construction materials and agro engineering segments.
As of the end of June, the company had RM19.53 million in deposits, cash and bank balances, while short-term borrowings totalled RM257.62 million.