KUALA LUMPUR (Jan 12): Integrated logistics provider Xin Hwa Holdings Bhd's wholly-owned unit Xin Hwa Trading & Transport Sdn Bhd has had its contract related to works for internal port operations of Port of Tanjung Pelepas Sdn Bhd (PTP) renewed yesterday.

The contract is for the supply of prime mover and drivers for housekeeping and other ancillary yard movement services at the Tanjung Pelepas Port.

In a bourse filing, Xin Hwa said the letter of award for the contract renewal was received on Jan 11 and that the value of the contract is dependent on the volume of services required by PTP, based on the agreed flat rate of RM9.20 per move.

Xin Hwa has been providing services to PTP since 2010, and its business transactions with PTP for the financial year ended Dec 31, 2015 (FY15) contributed approximately RM5.54 million to the group's revenue that year, the filing read.

The duration of the renewal is for one year, from Jan 1 to Dec 31, 2016, with an option for another year's renewal at PTP's sole discretion.

Xin Hwa expects the renewed contract to contribute positively to its earnings and net assets per share for FY16.

Shares in Xin Hwa closed two sen or 1.89% higher at RM1.08 today, for a market capitalisation of RM194.4 million.

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