KUALA LUMPUR (Apr 28): DRB-Hicom Bhd's wholly-owned unit Hicom Builders Sdn Bhd has bagged a RM50 million contract from Northern Gateway Infrastructure Sdn Bhd to develop the Integrated Immigation, Customs, Quarantine and Security (ICQS) complex in Bukit Kayu Hitam, Kedah.

In a filing with Bursa Malaysia this evening, DRB-Hicom (fundamental: 1.25; valuation: 2.6) said it will provide financial assistance of up to RM20 million to the subcontractors who will be appointed to undertake the relevant construction works.

It added that the award of the contract is a related party transaction as both companies — DRB-Hicom and Northern Gateway — are controlled by Tan Sri Syed Mokhtar Al-Bukhary and DRB-Hicom group managing director Tan Sri Mohd Khamil Jamil via Etika Strategi Sdn Bhd.

Syed Mokhtar holds a 90% stake in Etika Strategi, while Khamil owns the remaining 10%.

“The contract has been entered into on normal commercial terms consistent with Hicom Builders’ usual business practices and policies, and on terms no more favourable to the related parties than those generally available to the public.

The stock ended 0.53% or 1 sen lower at RM1.89 today, with 133,000 shares traded, for a market capitalisation of RM3.69 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)