KUALA LUMPUR (Aug 30): Citaglobal Bhd (formerly known as WZ Satu Bhd) has bagged an engineering, procurement and construction (EPC) contract to provide design, construction and equipping work in relation to Phase 1 of the Perlis Inland Port (PIP) with a contract sum of RM373.5 million — 85% higher than Citaglobal's current market value of RM202 million.

In a filing with Bursa Malaysia, Citaglobal said its wholly owned subsidiary Citaglobal Land Sdn Bhd (CG Land) has entered into EPC agreement with Inland Port Perlis Sdn Bhd (IPPSB).

IPPSB is the master developer for the PIP development on 500.28-acre land.

PIP is part of the key development plan by the state of Perlis to improve the transportation infrastructure in that area for an inland port terminal to handle loading, unloading and re-transporting of cargo containers between Malaysia and Thailand.

It should be noted that this is also part of the overall development currently being developed by the Perlis state and the Northern Corridor Implementation Authority.

CG Land is to undertake this EPC contract for a period of 24 months, commencing from the date of site possession. This contract is expected to contribute positively to the company's future earnings and net assets per share for the financial years ending Dec 31, 2022, to 2024.

With the addition of the EPC contract, Citaglobal's existing order book as of June 30 almost doubled to approximately RM755 million, from RM381 million.

Citaglobal's share price finished 2.7% or 0.5 sen higher at 19 sen on Tuesday (Aug 30). The counter has fallen 21% from 24 sen since the beginning of this year.