Kumpulan Kitacon and its subsidiary have accepted a letter of award from Sime Darby Property for the construction of factories in Malaysia.  

The main building works contract, valued at RM111.23m ($24.97m), is expected to positively impact the company's financial performance and net assets per share. 

The contract entails the construction of 27 units of detached factories, each with a two-storey office, and an additional unit of detached factory with a two-storey office.  

The scope of work also includes two units of TNB substations, infrastructure, and other associated works on part of lots 50418 and 34046, Phase i4, Bandar Bukit Raja III, Mukim Kapar, Daerah Klang Utara, Klang, Selangor Darul Ehsan. 

The contract is scheduled to start on 2 September 2024 and is expected to be completed within 23 months from the start date.  

Kumpulan Kitacon announced in a filing with Bursa Malaysia that the contract is anticipated to contribute to the company's earnings from 31 December 2024 until the end of the contract period. 

The company stated: “None of the directors, major shareholders and persons connected to them have any interest, direct or indirect, in the contract.” 

It anticipates that economic, political, regulatory, and operational risks may impact the contract. The company will implement appropriate measures to mitigate these risks. 

Last year, Kumpulan Kitacon and its subsidiary secured a contract for the development of residential units and electrical substations from Paragon Pinnacle.  

That contract was valued at RM50.3m and was divided into two packages. 

Kumpulan Kitacon specialises in residential construction, as well as non-residential projects.