KUALA LUMPUR: Shares in Pestech International Bhd were boosted in early trade Monday after announcing contracts worth RM70.5mil.
The counter rose three sen, or 2.33% RM1.32 with low trading volume of 126,300 shares done.
Pestech has secured a US$17.03mil (RM70.5mil) engineering, procurement and construction contract from PNG Power Ltd (PPL), in relation to the latter's Port Moresby Power Grid
Development Project in Papua New Guinea.
“The contract covers procurement of plant — design, supply and installation comprising the system study for the distribution network, design of the 11kV open mesh, supply and installation of equipment and systems for the PPGDP — Port Moresby Power Grid Development Project and Sub-project SP 3: Port Moresby System Study, 11kV open mesh design and distribution upgrade EPC Contract, ” Pestech said.
The contract is the third project awarded to Pestech by PPL. This follows the first contract awarded to Pestech in 2008 and another in 2016.
Kenanga Research is positive with Pestech’s as it was a good reference project with secured payment.
“We believe contract flows will not stop here as there are four major rail electrification tenders domestically in the pipeline.
“Given its technical capability, Pestech is likely to stand a good winning chance. Maintain outperform at RM1.75, ” Kenanga said.
Did you find this article insightful?