KUALA LUMPUR (June 5): An indirect unit of construction group Nestcon Bhd (KL:NESTCON), whose share price shot up over 20% just two weeks ago, has secured a RM3.6 million contract to develop and install a solar photovoltaic (PV) system.

According to Nestcon's filing with Bursa Malaysia on Wednesday, Nestcon Solar Sdn Bhd (NSSB), a wholly-owned subsidiary of Nestcon Sustainable Solutions Sdn Bhd, which is in turn a 51%-owned subsidiary of the company, had entered into an agreement with Subang Safety Glass Sdn Bhd to develop, design, install, construct and commission a solar PV system on the rooftop of Subang Safety Glass' premises.

This follows a memorandum of understanding signed between Nestcon and Nam Heng Safety Glass Sdn Bhd in August 2022 for the development of solar PV facilities at properties owned by Nam Heng Glass, including its related corporations in Malaysia.

The contract shall commence once certain conditions are satisfied, including receipt of the approval to the application for net energy metering from Sustainable Energy Development Authority (Seda) by Subang Safety Glass, completion of a connection assessment study, and the completion of a satisfactory physical inspection and assessment report of the site by NSSB.

Nestcon noted that the agreement is expected to contribute positively to the earnings and net assets of the group upon the successful implementation and execution of the PV system.

Nestcon's share price rose 23.5% over the course of five days from May 20 to May 24 to a 15-month high of 42 sen, marking its biggest year-to-date gain.

At Wednesday's market close, the counter was down 2.44% or one sen at 40 sen, which translates to a market value of RM283.28 million.

Nestcon’s shares closed down 2.44% or one sen to 40 sen on Wednesday, which translates to a market value of RM283.28 million.