EITA Resources bags RM79m MRT contract

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KUALA LUMPUR (Nov 25): EITA Resources Bhd has secured a contract worth RM79 million for the supply, procurement, installation, testing and commissioning of escalator and travelator system for all underground stations for the Sungai Buloh-Kajang line of the Mass Rapid Transit (MRT) project.

In a filing with Bursa Malaysia, EITA said its wholly-owned subsidiary, EITA Elevator (Malaysia) Sdn Bhd, had received the letter of acceptance (LOA) from Mass Rapid Transit Corporation Sdn Bhd today.

The LOA appointed its subsidiary as the designated contractor for Package ETS-U: Supply, Procurement, Installation, Testing and Commissioning of Escalator and Travelator system for all underground stations, subject to the terms and conditions stipulated in the LOA.

EITA said the contract is expected to commence anytime from the date of the official receipt of the LOA — on Nov 25 — until the practical completion of works, which is targeted to be achieved by December 2016.

“The contract will have positive effect on the revenue or earnings of EITA group for the financial year ending Sept 30, 2015 (FY15), and is expected to contribute positively to the future earnings and net assets of EITA group,” it said.

Separately, EITA’s net profit for the fourth quarter ended Sept 30, 2014, fell 43.2% to RM3.13 million, from RM5.49 million in the previous corresponding quarter, due to lower sales of better margin products.

Revenue also came in lower at RM43.14 million, from RM52.19 million.

For the full year ended Sept 30, 2014 (FY14), EITA’s net profit and revenue stood at RM12.72 million and RM198.91 million respectively.

EITA had on May 21 last year (2013), announced the change in financial year end, from Dec 31 to Sept 30. As such, it said comparative figures for the cumulative period ended Sept 30, 2013, are not presented.

It has recommended a final dividend in respect of the FY14 of 2 sen per ordinary share, under the single tier system, amounting to RM2.6 million.

Together with the first interim single-tier dividend of two sen per share, it will bring the total dividend payout in FY14 to four sen per share, EITA said.

EITA closed up 3 sen or 2.17% at RM1.41 today, giving it a market capitalisation of RM183.3 million.