HeiTech Padu group bags first power substation job

KUALA LUMPUR: HeiTech Padu Bhd , which recently ventured into the electrical, mechanical and civil engineering business for the energy sector, has bagged a RM26.2mil contract from Tenaga Nasional Bhd (TNB).

The IT system and technology services provider, which bought a 51% stake in Duta Technic Sdn Bhd for RM5mil in August, told Bursa Malaysia that the subsidiary had been appointed by TNB to establish a 132/33KV Tunjung (2X45MVA) main intake substation (PMU) in Kelantan.

The two-year contract will start on Jan 7, 2016.

The company said the contract would not have any material effect on its net assets for the financial year ending Dec 31, 2015 but would be contributing positively to the future earnings.

On the rationale for its purchase into Duta Technic, HeiTech had said on Aug 14 that in its 2015 business plan, it had identified the energy industry as a viable and feasible source of revenue via its participation in the Energy Smart Solutions initiative.

The Smart Solutions consists of smart grid system, green energy technology and enterprise monitoring as well as maintenance software system for the power sector and infrastructure. 

“HeiTech, through its existing business of providing ICT smart technology and solutions integration, will complement these initiatives,” it said.

HeiTech, which is 27.5% owned by Permodalan Nasional Bhd, said it was aware that the purchase might lead to a diversification of its core business if revenue or income contributions from Duta Technic exceeded 25% of its revenue or net profits, respectively.

For the nine-month financial period ended Sept 30, 2015, HeiTech Padu posted unaudited earnings of RM5.72mil compared with a loss of RM12.75mil in the corresponding period of last year. Revenue fell 2.8% year-on-year to RM277.92mil for the period.

HeiTech Padu shares closed unchanged at 61 sen on Monday.