KUALA LUMPUR (Oct 18): HeiTech Padu Bhd (KL:HTPADU), whose share price hit a record high of RM4.40, announced that it has won an RM892.2 million National Integrated Immigration System (NIISe) project.
This confirms The Edge Malaysia weekly’s report last month that the technology company had made a comeback and stood a good chance of winning the contract, quoting sources.
It is believed that there were three bidders for the NIISe project. The other two bidders were Dagang NeXchange Bhd (KL:DNEX) and Theta Edge Bhd (KL:THETA).
HeiTech said in a filing with Bursa Malaysia that it has to submit to the government a performance bond amounting to RM8.92 million not exceeding 30 days from the date of receipt of the letter of award.
Notably, HeiTech is the incumbent operator of the NIISe through the Malaysian Immigration System (MyIMMs), which has been in operation since 1993.
MyEG Services Bhd (KL:MYEG) is HeiTech’s largest shareholder holding a 14.99% stake, followed by Rosetta Partners Sdn Bhd — an investment vehicle owned by Sultan Muhammad V of Kelantan — with a 14.46% stake, and REDtone Digital Bhd (KL:REDTONE) with 6.38%.
The company anticipates the NIISe project to enhance its earnings and net assets per share for the financial year ending Dec 31, 2024 (FY2024), and continue to contribute positively until the completion of the contract.
For the second quarter ended June 30, 2024 (2QFY2024), HeiTech posted a net profit of RM449,000, reversing a net loss of RM4.53 million in the corresponding period last year.
Revenue grew by 13% to RM63.27 million from RM55.96 million in 2QFY2023, supported by stronger contributions across the technology, investment and niche market segments.
The company reported cash and bank balances of RM39.76 million as of June 30, 2024, while its short-term borrowings stood at RM136.4 million, with long-term liabilities amounting to RM13.29 million.
Trading of HeiTech shares was suspended ahead of the announcement on Friday. Its last traded price was RM4.34. The counter hit a fresh record high of RM4.40 on Thursday.
Since the beginning of the year, the company's share price has surged over 387%, thanks to the company benefiting from a turnaround of its business and successful contract bids.
In a separate filing on Friday, HeiTech said trading of the counter's shares will resume as usual next Monday.