KUALA LUMPUR (October 10): Pestech International Bhd has secured a signalling system work subcontract worth RM75 million for the Gemas-Johor Baru (JB) electrified double-track project.
In a filing with Bursa Malaysia, Pestech said the subcontract was awarded to Ansaldo STS Pestech Consortium, made up of its wholly-owned subsidiary Pestech Technology Sdn Bhd and Ansaldo STS Malaysia Sdn Bhd.
The consortium was awarded the job by another consortium consisting of SIPP Rail Sdn Bhd and Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd.
Pestech said the fixed subcontract price is RM339 million, and it includes optional items worth RM19.77 million.
The optional items, if exercised, will be allocated between Ansaldo STS and Pestech Technology.
Nonetheless, Pestech said pursuant to the consortium, the total subcontract price of the group’s portion of works was RM75 million.
“This has further built up local participation for the signalling portion of the rail electrification,” it said.
The project’s completion date will be April 1, 2021.
Pestech said the project will contribute positively to its revenue and earnings for the financial year ending Jun 30, 2019 (FY19) and FY20.
Pestech’s share price gained three sen or 2.11% to close at RM1.45 yesterday, giving the group a market capitalisation of RM1.11 billion.
This article first appeared in The Edge Financial Daily, on Oct 10, 2018.