Vsolar bags RM96m contract to supply parts for light rail vehicle overhaul job

Vsolar bags RM96m contract to supply parts for light rail vehicle overhaul job
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KUALA LUMPUR (Jan 12): Vsolar Group said it has accepted an RM96.27 million job to procure and supply parts to RA Integration Links Sdn Bhd (RAIL) to complete an overhaul of 50 sets of six-car light rail vehicle on the Ampang light rail transit line.

The group is looking to mobilise its expertise in supply chain management to assist RAIL obtain all necessary equipment and tools to complete the project, Vsolar said in a statement.

The deal, it said, will see RAIL make payments to the group via a financing deal with Bank Pembangunan Malaysia Bhd after the completion of procurement activities.

A search on RAIL’s website shows that it is a wholly  Bumiputra-owned company that provides engineering solutions and services as well as system provider for the rail industry in the Klang Valley.

Vsolar executive director Koo Kien Yoon said the company hopes to be the catalyst for its client companies to achieve their environmental, social and corporate governance (ESG) goals and is keen to continue its momentum to bring in more similar projects in 2022.

This, it said, is in line with Vsolar’s management initiative for 2022, which is to divert its focus to ESG-positive impact projects.

“This current procurement project runs for five years. It is a project that will impact the lives of millions of people who are staying in Klang Valley. No doubt, trains are one of the best transportation methods provided by the government and our team intends to keep it running at its best to continue serving the people,” said Koo.

In a filing with Bursa Malaysia, Vsolar said the contract is not expected to have any material impact on its earnings, net assets and gearing for the current financial year ending 30 June 2022 (FY22) but is expected to contribute positively to its future earnings.

Notably, the contract sum is RM26.7 million higher than the group’s market capitalisation of RM70 million.

For the first quarter of FY22, Vsolar reported a net loss of RM9.31 million on revenue of RM3.81 million mainly due its share-based payment of RM7.59 million.

The group has not made a profit since Dec 31, 2005.

Vsolar’s share price closed half sen or 25% lower at one and a half sen on Wednesday.

S Kanagaraju