PETALING JAYA (June 23): Puncak Niaga (M) Sdn Bhd (PNSB), a wholly owned subsidiary of Puncak Niaga Holdings Bhd (Puncak Niaga), has entered into an agreement with Pengurusan Air Selangor Sdn Bhd (Air Selangor) for the abstraction of water from the Bernam River Headworks new water treatment plant under Air Selangor’s license.

In a filing with Bursa Malaysia today, Puncak Niaga (fundamental: 1.9; valuation: 2.1) said under the agreement, Air Selangor will grant rights to PNSB under its license, which was issued by Lembaga Urus Air Selangor (LUAS), to extract water from the water source at the Bernam River water treatment plant from Aug 1, 2015 to Oct 31 the same year.

The agreement can be renewed for three months at a time — at the discretion of Air Selangor — upon the receipt of a written request from PNSB.

Puncak Niaga said PNSB had previously entered into a similar agreement with Kumpulan Darul Ehsan Bhd (KDEB) dated July 31 last year as KDEB was previously granted a license by LUAS for the abstraction of water at the Bernam River water treatment plant from Aug 1, 2014 to July 31, 2015.

“The agreement is not expected to have a material effect on the earnings, net assets and gearing of the PNSB and the Puncak group of companies for the financial year ending Dec 31, 2015,” the filing further read.

Puncak Niaga shares closed one sen or 0.38% higher at RM2.65, with a market capitalisation of RM1.102 billion.

(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.)