KUALA LUMPUR (Aug 12): Kumpulan Kitacon Bhd (KL:KITACON) has secured a contract worth RM111.23 million for the construction of factories and industrial facilities in Klang, Selangor.

In a filing with the bourse, the construction firm said that its wholly-owned subsidiary, Kitacon Sdn Bhd, had accepted a Letter of Award from Sime Darby Property (Bukit Raja) Sdn Bhd for the proposed work.

The contract involves the construction and completion of 27 detached factories with 2-storey offices, one larger detached factory with a 2-storey office, and two Tenaga Nasional Bhd (TNB) substations, including related infrastructure at Bandar Bukit Raja III in Klang, Selangor.

The project is scheduled to commence on Sept 2 and is expected to be completed within 23 months, according to the company.

With the latest contract win, Kitacon has secured five contracts since the beginning of the year, with a total value of RM446.85 million.

The group expects the latest contract to contribute positively to its earnings and net assets per share for the financial year ending December 31, 2024, and until the completion of the contract.

Kitacon is controlled by its Managing Director, Tan Ah Kee, who holds a 35% stake through Suan Neo Capital Sdn Bhd, along with an 8.37% direct shareholding.

The company reported a net profit of RM11.35 million for the three-month period ended March 31, 2024 (1QFY2024), up 6.78% from RM10.63 million a year earlier, as revenue surged by over 39% to RM225.2 million from RM161.5 million.

As of end-May, the group’s outstanding order book stands at RM1.26 billion.

Shares in Kitacon declined by 0.5 sen to 68 sen on Monday, valuing the company at RM337.5 million.