SDCG unit accepts RM18.5 mil BMS upgrade contract for Klang Valley rail stations

PETALING JAYA (July 16): Solar District Cooling Group Bhd’s (SDCG) wholly owned subsidiary, Solar District Cooling Sdn Bhd, has accepted a letter of award for a RM18.5 million contract to upgrade the existing building management system (BMS) at railway transit stations and ancillary buildings in the Klang Valley.

It said in a Bursa Malaysia filing on Wednesday that the contract, awarded by a major facility management player in the industry, covers the design, assessment, supply, installation, testing, commissioning and migration of the Stage 2 BMS upgrade.

The works are aimed at ensuring compatibility with the existing Stage 1 design and integration with key building services, including the Environmental Control System, Fire Protection and Power Systems.

The contract period is 24 months from July 15, 2026 to July 15, 2028.

SDCG said the contract is expected to contribute positively to the group’s earnings and net assets per share for the financial year ending Dec 31, 2026 and subsequent financial years until completion of the contract.

The group does not expect the contract to have a material impact on its gearing for FY2026.

Funding for the purchase of materials and installation works will be sourced from proceeds from the group’s initial public offering (IPO), trade facilities and internally generated funds.

SDCG said the contract was entered into in the ordinary course of business and does not require approval from shareholders or regulatory authorities.

The group added that none of its directors, substantial shareholders or persons connected to them has any direct or indirect interest in the contract.

SDCG does not expect any material risks arising from the contract beyond normal operational risks associated with the project.

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