HeiTech Padu wins two recurring income contracts

  • Business
  • Thursday, 25 Apr 2019

shares in IT provider HeiTech Padu Bhd gained ground in early trade on Monday, but has since cooled down following its reply to an unusual market activity (UMA) query by Bursa Malaysia. Yesterday, HeiTech Padu closed four sen lower at RM1.24. In a response to the UMA query on Monday, HeiTech Padu said it was not aware of any possible explanation to account for the unusual trading activity. On Friday, shares in HeiTech Padu hit limit-up after rising 30% or 31 sen

PETALING JAYA: Heitech Padu Bhd, which has seen a substantial stake disposal by its major shareholder Permodalan Nasional Bhd (PNB) over the last four months, has won two recurring income contracts from two Penang-based local council authorities.

The information technology services provider told Bursa Malaysia yesterday that it was appointed to develop and manage smart parking systems for the Penang Island City Council and the Seberang Prai Municipal Council.

Both contracts will be based on a revenue-sharing concession, at the agreed rates on the parking revenue collected.

The contract from the Penang Island City Council is for a period of five years, that commences from April 24 this year to April 23, 2024.

The contract comes with an option to renew for another two years thereafter.

“The contract is expected to have positive effects on the future earnings and earnings per share of HeiTech Padu.

Meanwhile, the contract from the MPSP will run for seven years from May 1, 2019 to April 30, 2026.

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