Perak Transit appoints edotco Malaysia to provide in-building, telco solutions

KUALA LUMPUR (June 1): Ipoh-based transport terminal and bus operator Perak Transit Bhd has appointed edotco Malaysia Sdn Bhd to provide services related to in-building and telecommunications solutions and structures in designated buildings or lands owned by Perak Transit’s units.

In a bourse filing on Wednesday (June 1), Perak Transit announced that the company entered into a strategic alliance agreement with edotco Malaysia to appoint the latter to provide the services to build, erect, install, construct, maintain and operate the relevant in-building solutions.

This is also in addition to any other telecommunication solutions and structures in designated buildings or designated land owned and managed by Perak Transit’s subsidiaries in accordance with the terms and conditions of the agreement.

Pursuant to the agreement, Perak Transit said edotco Malaysia shall pay rental for the usage of the relevant locations required or requested by edotco Malaysia for the installation and erection of the relevant assets and to enter into a tenancy agreement for each of the relevant locations.

The terms shall include first term of three years with automatic renewal for two consecutive terms, and monthly rental for tenancy of the relevant locations.

“Similar to determination of rental fees at market rate for the first term, any increment following expiry of the first term shall be in accordance with the standard market rate. Increments shall only be applicable upon renewal of successive three-year terms,” it said.

Perak Transit noted it aims to drive modernised and sustainable urban transport services and solutions with strong digitisation initiatives to better serve all its stakeholders.

"In collaboration with edotco Malaysia, it allows Perak Transit to further diversify into more innovative leasing ideas, while increasing the monetisation potential of its existing asset base.

“In addition, Perak Transit can also benefit from knowledge transfer in terms of technical knowledge and further innovate its business to capitalise on the long-term growth trend in the area of technology,” it added.

Perak Transit’s net profit for the first quarter ended March 31, 2022 (1QFY22) rose 6.33% to RM14.25 million from RM13.4 million in the same period last year on the back of higher quarterly revenue which grew 14.69% to RM40.66 million from RM35.45 million.

Perak Transit attributed the higher earnings mainly to higher contribution from the integrated public transportation terminal operations and bus operations.

Perak Transit’s share price finished 0.71% or half a sen higher at 70.5 sen, bringing a market capitalisation of RM496 million.