PETALING JAYA: ARB Bhd’s wholly owned subsidiary, Arbiot Sdn Bhd, has received and accepted a letter of award (LoA) from Prinsiptek Corp Bhd to carry out an Internet-of-Things (IoT) contract for the systems, engineering, procurement, commissioning and management of a proposed residential development in Shah Alam, Selangor for RM60.43mil.
This is the second consecutive IoT contract garnered by ARB, the company formerly known as Aturmaju Resources Bhd. The day before, it had secured a RM18mil contract for a proposed residential development in Perak.
For the latest RM60.43mil contract, the proposed residential development comprises one block of 13-storey serviced apartments of 260 units, including six levels of carpark.
The duration of the contract will be for 18 months from the date of the LoA.
Arbiot will act as the sole project consultant to handle all resources, scope, cost and risk of the project. It will also design and execute all the pre-commissioning and commissioning activities and testing of the IoT systems, including the wire installation and wireless and mechatronic works required.
ARB was up four sen to 46.5 sen on a volume of 14.39 million shares yesterday.
On Wednesday, ARB announced that it had garnered a contract worth RM18mil to provide IoT system and engineering, procurement, commissioning and management services for a proposed residential development in Perak.
In a filing, ARB said Arbiot and IJV Ventures Sdn Bhd had inked a business contract to carry out the project.
The development comprises 130 units of single-storey terraced houses to be developed into an IoT technology lifestyle residential development project.
Yesterday, RHB Research also released a trading note on ARB. It has a fair value of 59 sen on the stock based on an ex-cash 2019 price earnings ratio of 24 times.
This is premised on ARB’s emphasis on recurring enterprise resource planning and solar projects, apart from its recent venture into the IoT business.
“We think the market has yet to appreciate its transformation from a loss-making, timber-related company to a profit-generating business.”