KUALA LUMPUR (Nov 21): Newly ACE Market-listed electrical and mechanical engineering firm Kejuruteraan Asastera Bhd (KAB) has accepted two contracts in relation to electrical engineering services and extra low voltage services, for a total contract sum of RM23.8 million.

In a bourse filling today, KAB said the first letter of acceptance (LoA) was accepted from Sri Binaraya Sdn Bhd, with the contract sum of RM9.8 million.

KAB shall act as a nominated subcontractor for the complete supply, delivery, installation, testing and commissioning of the electrical system for Greenfield Residence — a three-tower apartment complex located in Bandar Sunway, Selangor.

The delivery of KAB's services is expected to be completed by April 30, 2020.

Meanwhile, the second LoA was accepted from Pembinaan Bintang Baru Sdn Bhd, for a contract sum of RM14 million, for which the delivery of its services is expected to be completed by Feb 10, 2020.

For this job, the group shall act as a nominated subcontractor for the provision of electrical engineering and extra low voltage services for Cerrado (Phase 1).

The Cerrado is a serviced residence comprising two blocks of serviced apartments, five units of three-storey villas along with recreational and commercial facilities located in Sepang, Selangor.

"The LoAs are expected to contribute positively to the future earnings of KAB for the duration of the respective contracts.

"There are no foreseeable significant risks other than normal business and operational risk associated with the LoAs," it said.

At 2.30pm, the group was trading one sen or 3.51% lower at 27.5 sen, with 21.33 million shares traded, or a market capitalisation of RM8.64 million.