KUALA LUMPUR (April 3): Kumpulan Kitacon Bhd's wholly owned subsidiary Kitacon Sdn Bhd has secured a contract worth RM80.98 million for a housing development project in Shah Alam, Selangor.

The contract, awarded by Sime Darby Property Bhd’s wholly owned unit Sime Darby Property (City of Elmina) Sdn Bhd, involves constructing and completing 40 double-storey cluster houses, 86 double-storey semi-detached houses, and one Tenaga Nasional Bhd (TNB) substation (double chamber) in Lot 40390, Elmina West, Seksyen U15, Shah Alam.

Notably, this marks the group's second contract secured this year, following the award on Feb 13 to construct 182 terrace houses in the Selangor Cyber Valley for RM65.43 million.

In a Bursa Malaysia filing, Kumpulan Kitacon said the latest project is scheduled to begin on April 22 and is slated for completion within 18 months from the commencement date. The contract is expected to contribute positively to the group’s earnings and net assets per share for the financial year ending Dec 31, 2024, and onwards, until the expiry of the contract.

However, potential risks affecting the contract include changes in the economic, political, and regulatory environment, as well as operational risks such as completion risk and shortages of materials and skilled labour, which the group would take appropriate measures to minimise.

Kumpulan Kitacon was last traded at 65 sen, valuing the construction firm at RM325 million.