KUALA LUMPUR (Sept 3): Salcon Bhd bagged a RM14.15 million contract to upgrade, rehabilitate and expand an existing sewerage treatment plant located in Hulu Langat, Selangor.

In a filing with Bursa Malaysia, Salcon said Envitech Sdn Bhd, an indirect 60%-owned subsidiary through Salcon Engineering Bhd, had accepted the letter of award dated Aug 27 from Knowledge Vision Sdn Bhd today.

The project involves upgrading, rehabilitation and expansion of the sewerage treatment plant capacity to 134,000 PE (population equivalent), from 54,000 PE.

Salcon said the project spans 16 months, beginning Sept 10 this year and is expected to complete by Jan 9, 2017.

“The project is a construction contract and has no option for renewal,” Salcon said, adding it is expected to contribute positively towards its earnings and net assets for the financial years ending Dec 31, 2015 (FY15), FY16, and FY17.

Salcon (fundamental: 1.65; valuation: 1.8)'s share price gained 1.5 sen or 2.5% to 61.5 sen today, giving it a market capitalisation of RM403.62 million.

(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.)