KUALA LUMPUR (Jan 7): UUE Holdings Bhd (KL:UUE), via its wholly owned subsidiary Kum Fatt Engineering Sdn Bhd, has secured contract extensions and renewals worth a total of about RM36.5 million from Komasi Engineering Sdn Bhd.
The contracts cover underground cable installation and commissioning works within Tenaga Nasional Bhd’s (KL:TENAGA) distribution network.
The first contract is a nine-month extension — valued at over RM22 million — for the installation, testing, and commissioning of 33kV underground cables and accessories for asset development in Terengganu and Kelantan. The extension is valid until Oct 8.
The second contract is an 11-month renewal — worth RM14.5 million — for similar works involving 11kV underground cables and accessories for asset development in Johor. This renewal is valid until Dec 5.
Both contracts were secured by UUE in 2022, prior to its listing on Bursa Malaysia's ACE Market in July 2024, said UUE, whose shares have gained over 264% from its initial public offer of 24 sen per share.
According to the group’s statement, the contracts are anticipated to contribute positively to the group’s earnings and net assets until their expiration.
It said the latest contract wins underscore UUE’s ability to replenish its order book, driven by TNB’s ongoing capital expenditure to upgrade utility infrastructure in line with the National Energy Transition Roadmap’s goal of achieving net-zero emissions by 2050.
“We are delighted to have secured the contract extension and renewal, contributing to the development of critical infrastructure and also positioning UUE at the forefront of this high-growth market. Our vertical integration strategy, which combines in-house manufacturing of HDPE [high-density polyethylene] pipes with our expertise in underground utilities engineering specially in HDD [horizontal directional drilling] works, gives us a unique competitive advantage while supporting Malaysia’s rapid transition towards a more connected and sustainable future,” UUE managing director Datuk Dr Ting Kok Hwa said.
He added that UUE is currently planning the construction of a new factory to support the in-house manufacturing of HDPE pipes, catering to its expanding order book.
“This marks a significant milestone in our growth journey. We remain committed to strengthen our order book by actively pursuing new project opportunities and reinforcing our presence in existing markets,” Ting added.
As of April 30, 2024, the group had an unbilled order book value of RM223.4 million, which is expected to be realised over the next three financial years.
Shares of UUE closed up half a sen or 0.57% at 87.5 sen on Tuesday, giving the utilities engineering solutions provider a market capitalisation of RM529.2 million.