KUALA LUMPUR: Ann Joo Resources Bhd and partner PT Lumintu Insan Mandiri, secured a RM297.9 million contract for the design and construction of electrification works for the East Coast Rail Link (ECRL) feeder stations.
The contract, was awarded by Tenaga Switchgear Sdn Bhd, a subsidiary of Tenaga Nasional Bhd.
Through Ann Joo Metal Sdn Bhd, the project includes a 132kV switching station, overhead transmission lines, underground cable installation, and associated tasks.
According to a filing with the bourse, the ECRL Electrification Project is expected to be completed by May 31, 2026.
"The ECRL Electrification Project is expected to contribute positively to the revenue and earnings of Ann Joo Group for the financial years ending Dec 31, 2024 and Dec 31, 2025," it added.
However, Ann Joo said the project's profitability could be affected by economic, political, and regulatory changes, such as new laws, taxes, shifts in electricity tariffs, interest rates, and currency exchange rates.
"The group seeks to mitigate such risks by closely monitoring the development in such areas and where appropriate, review or revise business strategies and direction in response to such changes," it said.
Ann Joo rose 4.9 per cent to trade at RM1.28 a share after the announcement, giving it a market capitalisation of RM740.6 million.