Jati Tinggi shares gained in active trade recently after it said it won a contract to supply and install photovoltaic solar panel systems at Public Bank Bhd’s branches for some RM14.88 million.

The job involves 135 public bank branches, covering 333 lots of properties owned by Public Bank, Public Bank group officers’ retirement benefits fund, and Public Holdings Sdn Bhd. The infrastructure utilities engineering services provider said the project shall be completed within three years.

It is exploring new business segments such as electricity generation through renewable energy, to achieve a stable financial performance. Its 3QFY2024 net profit stood at RM1.29 million compared with RM1.41 million in 3QFY2023.

Jati Tinggi provides underground and overhead utilities engineering services and solutions; substation engineering, procurement, construction and commissioning services; equipment trading for substations; and street lighting services.

For 9MFY2024, the company secured contracts worth RM270 million, bringing its outstanding order book to about RM400 million. It is currently bidding for projects valued at RM1 billion and has a historical success rate of about 20%.

Among the key projects secured in recent months are a RM50.87 million contract for the installation of a 132kV underground single circuit cable in Cyberjaya, Selangor, and a RM41.07 million contract for laying 33kV aluminium XLPE underground cables and accessories in Selangor.

It is worth noting that 20% of Jati Tinggi’s project wins are related to data centres (DCs). Lim anticipates that contributions from this segment will continue to grow, given that 79 registered DCs in the country need to be completed over the next three years.

Looking ahead, the group aims to participate in more large-scale projects involving transmission-related underground and overhead utilities engineering services with M&A on the cards. As at end-August 2024, Jati Tinggi had a net cash position of RM4.06 million, with RM19.37 million in loans and borrowings and RM23.43 million in cash, bank balances and fixed deposits.