KUALA LUMPUR (Nov 12): Instacom Group Bhd has clinched a RM29 million contract for the installation of telecommunication towers across 30 hub sites in Perak, Negeri Sembilan and Sabah.

According to its filing with Bursa Malaysia, the contract was awarded by Teras Millenium Sdn Bhd to Instacom Engineering Sdn Bhd, a subsidiary of Instacom.

The contract entails the supply, delivery and installation of tower structures, including monopoles, other site infrastructure and ancillaries for the sites, in accordance to the Universal Service Plan approved by the Malaysian Communications and Multimedia Commission (MCMC).

"The tower project is expected to be completed within seven months from the date to be determined by MCMC. As of to-date, no fixed date of commencement has been provided. Nonetheless, Teras would like to commence work at the earliest possible date due to the urgency of the tower project," it said.

The group added that the planning for the project is already ongoing, and that the date of commencement will be finalised in the foreseeable future.

It said the tower project is expected to contribute positively to the earnings and net assets of Instacom during the tenure of the project.

"The risks associated with the tower project [are] mainly operational risks and risk of delay in completion of the project. Notwithstanding this, the management of Instacom will strive to ensure full compliance to the requirements of the tower project," said the group.

Shares in Instacom gained two sen or 9.8% to close at 22.5 sen, bringing its market capitalisation to RM479.8 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)