KUALA LUMPUR: Kumpulan Kitacon Bhd's unit Kitacon Sdn Bhd has received a contract from Tropicana Alam Sdn Bhd worth RM131.9 million for a housing project in Kuala Selangor.
In a filing with Bursa Malaysia Securities, the company said the construction involves 449 units of double storey terrace houses (20' x 70'), 31 units of double storey terrace house (22' x 70') and two units of TNB substation at Bandar Puncak Alam.
The contract will begin on November 1 and is expected to complete within 24 months from the commencement date.
"The contract will not have any effect on the share capital and shareholding structure of Kumpulan Kitacon. The Contract, however, is expected to contribute positively to the earnings and net assets per share of Kumpulan Kitacon for the financial years ending Dec 31, 2024 onwards until the expiry of the contract," it said.
Risk factors affecting the contract includes changes in economic, political and regulatory environment and operational risks such as completion risk and shortage of materials and skilled labour which the group would take appropriate measures to minimise.
The company's share price stood unchanged at 74 sen at midday, with a market capitalisation of RM367.47 million.