KUALA LUMPUR (Jan 26): T7 Global Bhd (KL:T7GLOBAL) said on Monday that the project to upgrade the baggage handling system at Terminal 1 of Kuala Lumpur International Airport (KLIA), originally slated for completion last December, has been delayed to the fourth quarter of 2028 (4Q2028).
The contract, secured in October 2022 by a consortium comprising its unit T7 Kemuncak Sdn Bhd and Siemens Logistics Pte Ltd under the VL T7 Consortium, was awarded by Malaysia Airports Holdings Bhd’s unit, Malaysia Airports (Sepang) Sdn Bhd, with an initial three-year project period.
In a bourse filing, T7 Global said the revised completion timeline follows the execution of a supplemental agreement between Malaysia Airports (Sepang), Vanderlande Logistics Pte Ltd, or VL (formerly known as Siemens Logistics Pte Ltd), and T7 Kemuncak.
“The completion date for the project has now been extended to the fourth quarter of 2028 to better correspond with the prevailing site conditions and project requirements,” it said.
The group said the extension “reflects the mutual intention of Malaysia Airports (Sepang), VL and T7 Global to complete the project effectively in the interest of all stakeholders, and does not pose any material additional risk to the company beyond those already associated with the original contract”.
The Edge Malaysia weekly reported in February last year that the consortium had sought more time to complete the upgrade, citing the challenges of working in a “live” airport environment, with construction works carried out during daily operations while passengers continued to travel through KLIA Terminal 1.
The stock is currently trading at a price-earnings ratio of 5.9 times, according to AskEdge, lower than that of peers such as Dialog Group Bhd (KL:DIALOG) at 31.3 times, Velesto Energy Bhd (KL:VELESTO) at 12.2 times, and Yinson Holdings Bhd (KL:YINSON) at 11.6 times. It is however more "expensive" than Perdana Petroleum Bhd (KL:PERDANA) at 4.2 times, Uzma Bhd (KL:UZMA) at 4.1 times, and Vantris Energy Bhd (KL:VANTNRG) at 0.2 times.
Shares of T7 Global rose 1.5 sen or 4.84% at 32.5 sen at Monday’s noon break, giving it a market capitalisation of RM299.08 million.