KUALA LUMPUR (April 28): Sasbadi Holdings Bhd's units have secured three textbook contracts worth a total of RM7.71 million from the Ministry of Education (MoE).

In a bourse filing today, Sasbadi said its wholly-owned unit Sasbadi Sdn Bhd (SSB) has signed and accepted a letter of acceptance from the ministry dated April 28 to publish, print and supply the textbook package on Mathematics for Year 1 of the Chinese national-type primary schools (SJKC) throughout Malaysia.

The Mathematics textbook contract, which starts today, will last till Dec 31, 2018. The deal is valued at RM3.89 million.

Sasbadi's indirect subsidiary The Malaya Press Sdn Bhd (TMP) has signed and accepted two letters of acceptance dated April 28 from the MoE to publish, print and supply the textbook packages for the Chinese Language and Physical Education and Health Education (PEHE textbook contract) for Year 1 of the SJKC throughout Malaysia.

Both contracts, which also begin today and end on Dec 31, 2018, are valued at RM3.81 million.

TMP is a wholly-owned subsidiary of Sanjung Unggul Sdn Bhd, in which the company holds a 70% equity interest acquired on Aug 21, 2015.

Sasbadi said the three deals will not have any material effect on the earnings and net assets of the Sasbadi Holdings Group for the financial year ending Aug 31, 2016 (FY16).

This is because SSB and TMP are only expected to deliver the first tranche of the contracts, worth about RM4.33 million, in the first and second quarters of FY17.

As such, the deals are only expected to contribute positively to the earnings and net assets of the Sasbadi Holdings Group from FY17 onwards till the completion of the deals.

Sasbadi closed four sen or 3.2% higher at RM1.29 today for a market capitalisation of RM360.43 million.