Kelington Subsidiary Gets RM38m Job in China

KUALA LUMPUR (March 15): Kelington Group Bhd’s wholly-owned subsidiary Kelington Engineering (Shanghai) Co Ltd (KESH) has secured a RM37.9 million contract to perform gas hook-up works for Ruili Integrated Circuit Co Ltd’s memory chip wafer fabrication project in Hefei, which is the capital of China’s Anhui province.

In a Bursa Malaysia filing today, Kelington said KESH on Friday (March 12) received the contract from The Fourth Construction Co Ltd.

“The contract value is worth approximately RM37.9 million subject to the actual number of tools installed. The contract is for a period of one year commencing in March 2021 and expected to be completed by May 2022.

“The contract is expected to contribute positively to the earnings and net assets of Kelington for the financial years ending Dec 31, 2021 and Dec 31, 2022.

“With this new award of contract, the latest order book of KESH is now at 94 million yuan (approximately RM59.4 million),” Kelington said.

On Bursa today, Kelington’s share price fell four sen or 2.03% at 2.59pm to RM1.93 for a market value of about RM608.97 million.

Kelington has 315.53 million issued shares, according to its latest quarterly financial report.

Source: The Edge