Quick take: Kumpulan Powernet surges 12% on hydropower contract win

KUALA LUMPUR: Shares in Kumpulan Powernet Bhd jumped over 12% in early trade Wednesday on the heels of its RM354mil job from Kangsar Hidro Sdn Bhd.

The counter, one of the top gainers on Bursa Malaysia, jumped 12.05%, or 20 sen to RM1.86 with 3.1 million shares traded.

Kumpulan Powernet has secured a RM354mil job from Kangsar Hidro to undertake, amongst others, the preliminary study, design, supply, construction, commissioning and completion of five mini hydropower plants with total capacity of 32.47MW, all in Perak.

Kangsar Hidro is a joint venture between Yayasan Perak and Kangsar Capital Sdn, a wholly owned subsidiary of OHP Ventures Sdn Bhd, which was established to undertake the development of the hydropower project.

The target completion date of the works is 48 months from the commencement date of Dec 24, 2024, whichever is earlier.

Kumpulan Powernet said the award is expected to contribute positively to the net assets, consolidated earnings and earnings per share for the financial year ending June 30, 2020, to June 30, 2025.

According to the group, the contract award is expected to result in a diversion of 25% or more of the net assets of the group and could contribute 25% or more to its net profits.