KUALA LUMPUR (June 19): Salcon Bhd’s 60%-owned indirect subsidiary Envitech Sdn Bhd has bagged a RM24.35 million contract to build a sewage treatment plant and a pumping station.

In a filing with Bursa Malaysia today, Salcon (fundamental: 1.2; valuation: 1.65) said Envitech had accepted a letter of award dated June 15, 2015 from Perunding Majucipta Sdn Bhd for the proposed project.

Envitech is a 60%-owned subsidiary of Salcon Engineering Bhd, which in turn is a wholly-owned unit of Salcon.

The project, which is expected to run for up to 65 weeks, involves the conversion of an existing aerated lagoon to a sewage treatment plant and an existing sewage treatment plant to a pumping station and related works for Orient Housing Development Sdn Bhd, Infinite Accomplishment Sdn Bhd, Desaria Home Sdn Bhd, C&G Maxim Sdn Bhd, Meridian Maxim Sdn Bhd and BKSC Properties Sdn Bhd.

Salcon said the project is expected to contribute positively towards the earnings and net assets of the group for the financial years ending Dec 31, 2015 and 2016.

Salcon shares closed unchanged at 84.5 sen today, bringing a market capitalisation of RM571.37 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.)