Thursday 28 Mar 2024
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KUALA LUMPUR (April 24): HeiTech Padu Bhd has bagged two contracts to develop and manage smart parking systems on Penang Island and Seberang Perai.

The group accepted the Letters of Award from Majlis Bandaraya Pulau Pinang (MBPP) and Majlis Perbandaran Seberang Perai (MPSP) today, it said in a stock exchange filing.

The contracts are revenue-sharing concessions between HeiTech and MBPP and MPSP respectively, based on agreed parking rates.

The contract with MBPP is for five years beginning today until April 2024, with an option to renew the agreement for an additional two years, HeiTech said.

Meanwhile, its contract with MPSP is for a seven-year period beginning May 1, 2019 until April 30, 2026.

While both contracts are expected to have positive effects on the group’s future earnings, HeiTech said it would not have a material effect on its dividend policy or its net assets for its financial year ending Dec 31, 2019.

Shares in HeiTech closed up 5.5 sen or 6.18% at 94.5 sen today, giving the group a RM95.66 million market capitalisation.

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