KUALA LUMPUR (Nov 19): Eden Inc Bhd (KL:EDEN) has bagged a contract worth RM20 million from the Ministry of Health (MOH) for the provision of outsourced food services at the National Cancer Institute.
The RM20 million contract value is about 27% of its market capitalisation of RM73 million based on its closing price of 14.5 sen on Tuesday.
Eden’s wholly owned subsidiary Eden Catering Sdn Bhd has accepted the letter of offer, the diversified group said in a bourse filing.
The three-year agreement, set to commence on Jan 1, 2025 and conclude on Dec 31, 2027, is expected to positively impact the group’s earnings and net assets for the financial years ending June 30, 2025 (FY2025) through FY2028.
The contract aligns with Eden’s broader strategy to diversify and expand its operations by transitioning from its business-to-consumer (B2C) roots to include business-to-business (B2B) and business-to-government (B2G) opportunities, the group said in a separate statement.
Meanwhile, the energy segment remains the major contributor to the group, operating two power plants, alongside its tourism division, which manages Underwater World Langkawi (UWL).
Tan Sri Abd Rahim Mohamad is the group’s largest shareholder with a 15.39% stake, followed by Datin Leong Kim Fong with 11.08% stake and Datuk Wee Cheng Kwan with 7.5% stake, its 2024 annual report showed.
Abd Rahim, who is the group executive chairman, had extensive experience in various government ministries before he left the public sector in 1984.
Earnings-wise, Eden’s net profit improved to RM72.16 million in the fourth quarter ended June 30, 2024 (4QFY2024), against a net loss of RM24.75 million a year ago, due to a fair value gain on its investment properties in Gebeng, Pahang, and better profit contribution from its energy segment.
Revenue for the quarter grew 5% to RM44.04 million, from RM41.96 million a year on better revenue contribution from both its energy, food & beverage and tourism segments.
For the full year of FY2024, its net profit more than tripled to RM76.35 million, from RM23.86 million a year ago on the back of cumulative revenue improved 17% to RM178.2 million, from RM151.92 million previously.