KUALA LUMPUR (May 5): MCE Holdings Bhd has bagged a contract from Perodua to supply various electronics and mechatronic components and parts for the car maker’s new models.

MCE said the contract is expected to generate a revenue of RM34 million over the six-year contract period, while the estimated total investment cost is RM2.2 million.

The job is expected to commence in the first quarter ending July 31, 2022 (FY22), the group said in a filing to Bursa Malaysia.

The project will not have any material impact on the group’s earnings for FY20 and will only contribute positively to the group’s earnings over a six-year period from FY22.

For the first quarter of FY20, MCE reported a wider net loss of RM2.78 million, versus RM986,000 a year earlier. Quarterly revenue, however, rose 6.7% to RM17.82 million from RM16.7 million.

MCE attributed the wider losses to higher operating costs incurred.

Shares of MCE were untraded today. The counter was last traded at 35 sen. Over the past one year, the price had halved from 70 sen.