Pestech moves higher on Gemas-JB double track project win

KUALA LUMPUR: Pestech International Bhd is seeing positive price action, rising as much as 10 sen or 6.9% to RM1.55 in early morning trade.

This comes on the back of the announcement that it had secured a RM399mil contract for the Gemas-JB double track electrification project.

As at 9.50am, Pestech International Bhd was up nine sen or 6.2% to RM1.54 on the back of 215,400 shares done.

The group said yesterday its wholly owned subsidiary Pestech Technology Sdn Bhd had accepted a letter of award from Syarikat Pembenaan Yeoh Tiong Lay, under a consortium between SIPP Rail Sdn Bhd and Syarikat Pembenaan Yeoh Tiong Lay, appointing Pestech Technology as subcontractor for the proposed project.

"The entire project involves the construction of 197km of double tracks, stations, electric trains, depots, land viaduct, bridges, and electrification, signalling and communication systems," it said in a stock exhange filing yesterday.  

The project is scheduled for completion on April 1, 2021.

"The Project will contribute positively towards the revenue and earnings of PESTECH in accordance to the stages of project progress to be recognized in the financial years ending 30 June 2019 to 30 June 2020 and is expected to contribute positively to the future earnings and net asset per share of the Company."