KUALA LUMPUR (Sept 26): Xin Hwa Holdings Bhd has secured a contract to provide transportation services in Singapore worth about S$6.9 million (RM21.5 million).
 
The logistic services provider said the contract, awarded by BD Cranetech Pte Ltd, entails delivering precast element for the construction of rail and bus depot and reception tunnels in Singapore.
 
“The (exact) value of the contract is dependent on the total tonnage of precast element to be delivered over the period of the contract and the unit rate of delivery which varies based on the types of trailer to be used for transportation,” Xin Hwa said in a filing with Bursa Malaysia.
 
It added that the contract — which was awarded to its wholly-owned unit Xin Hwa Trading & Transport Sdn Bhd — is valid for four years from November.
 
“We are very happy and proud to be awarded this contract. This contract win is a testament to Xin Hwa’s expertise and capability in transportation of precast structures,” Xin Hwa managing director Ng Aik Chuan said in a separate statement.

“We have proven track record in transporting precast structures for numerous infrastructure projects in Malaysia and Singapore for the past 10 years,” Ng added.

Xin Hwa said the new contract is expected to contribute positively to its earnings for the financial year ending March 31, 2018.

Going forward, Ng said Xin Hwa is working on “a few more opportunities in the pipeline” and hoped to “deliver more good news in the foreseeable future”.

Listed since June 2015, Xin Hwa is headquartered in Johor, with three branches and four site offices nationwide. Employing over 800 employees, the group has more than 1,000 vehicles and two warehouses to support its business operations, which includes land transport operations, warehousing and distribution operations and other services.

Xin Hwa’s share price dropped two sen or 1.89% to close at RM1.04 today, giving it a market capitalisation of RM224.64 million.