Malaysia-based Kumpulan Kitacon and its subsidiary have been awarded a contract to develop residential units and electrical substations by Paragon Pinnacle.

The contract is valued at RM50.3m ($10.8m) and divided into two packages.

The packages feature the construction and completion of residential units and electrical substations.

Under package one, Kitacon will build 80 units of single-storied terrace houses, one electrician substation, and emblem fencing.

Package two entails the construction of 104 units of single-storied terrace houses and one electrical substation.

In a filing with Bursa Malaysia, Kumpulan Kitacon stated that this contract will have a positive impact on its earnings and net assets per share.

The company expects the contract to contribute to its financial performance from 31 December 2023 onwards until the contract's expiration.

The contract is scheduled to commence on 26 June 2023 and complete within 15 months.

With the contract's implementation, Kumpulan Kitacon anticipates improved financial results and increased value for its shareholders.

The company noted that “the contract will not have any effect on the share capital and shareholding structure of Kumpulan Kitacon”.

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

Kitacon expects economic, political and regulatory environment and operational risks to affect the contract. It will take appropriate measures to reduce the risk factors.