KUALA LUMPUR (Dec 17): Engineering services provider Jati Tinggi Group Bhd (KL:JTGROUP) has secured an RM117.17 million contract from Tenaga Nasional Bhd (TNB) (KL:TENAGA) to undertake works related to a 275kV bulk power supply connection to a data centre in Johor.

In a bourse filing on Wednesday (Dec 17), the group said the letter of acceptance dated Dec 16 was issued to an unincorporated joint venture between its wholly-owned Jati Tinggi Holding Sdn Bhd and Idiqa Holding Sdn Bhd.

The contract involves the establishment of the TNB 275kV Jelutong Switching Station (a gas insulated substation) as well as the supply, erection, testing and commissioning of a 275kV bulk supply connection to the data centre.

Under the joint venture arrangement, Jati Tinggi Holding holds a 70% stake while Idiqa Holding holds the remaining 30%. Both parties are jointly and severally responsible for the execution and completion of the works.

The contract, effective from Dec 16, 2025, is to be completed within 730 days from a commencement date to be fixed.

The latest contract follows an earlier RM161.45 million project TNB awarded in May to the same joint venture. That contract also involved a 275kV bulk supply connection for a Johor-based data centre, together with the establishment of a new 275kV transmission main intake, relay and retrofitting works, and system reconfiguration.

For its third financial quarter ended Aug 31, 2025 (3QFY2025), Jati Tinggi's net profit jumped to a record RM3.18 million from RM1.29 million a year earlier, as revenue — contributed entirely by its underground utilities engineering services and solutions segment — surged 93.55% to RM52.96 million from RM27.36 million.

Despite the stronger quarterly performance, Jati Tinggi’s nine-month net profit fell 36.68% to RM5.86 million from RM9.26 million in the same period a year earlier. Nine-month revenue, however, rose 21.18% to RM110.15 million from RM90.9 million. The lower cumulative earnings was due to reduced other income following the absence of a gain from the disposal of an investment property.

As at September 2025, Jati Tinggi's order book stood at RM710 million, providing earnings visibility for the next two to three financial years.

The group's shares closed half a sen or 0.83% higher at 60.5 sen on Wednesday, giving it a market capitalisation of RM263.8 million. Year to date, the counter is up more than 14%.