Jati Tinggi Group Secures Significant TNB Contract
Jati Tinggi Group Bhd (JTGB), through its wholly-owned subsidiary Jati Tinggi Holding Sdn Bhd, has been awarded a significant contract from national utility provider Tenaga Nasional Bhd (TNB). The contract, which is a collaborative effort with Worktime Engineering Sdn Bhd (WESB) via an unincorporated joint venture, is valued at a substantial RM19.41 million. The primary objective of the project is the design, supply, installation, testing, and commissioning of new 33kV submarine cables and accessories. This critical infrastructure project is located at Sungai Manjung, Lumut, Perak, and will serve to upgrade the area’s power transmission network. The joint venture structure sees Jati Tinggi Holding holding a 70% stake, while Worktime Engineering holds the remaining 30%, a partnership that leverages the combined expertise of both companies.
Comprehensive Scope of Work and Project Timeline
The contract outlines a detailed and comprehensive scope of work that goes beyond simple installation. The project’s specifications require the joint venture to first undertake the crucial task of dismantling the old, existing cables before proceeding with the installation of the new ones. This full-service approach ensures a seamless transition and upgrade of the power infrastructure. The new insulated lead sheathed 33kV submarine cables and their associated accessories are a key component of the project, which also includes a final stage of system testing and commissioning to ensure operational integrity. The contract was made effective on July 21 and is scheduled for completion within 365 days, providing a clear and ambitious timeline for the execution of this vital public utility project.
Positive Impact on Financials and Future Outlook
The board of Jati Tinggi Group expects this contract award to have a positive and lasting impact on the company’s financial performance. The RM19.41 million project is anticipated to contribute favorably to the company’s future earnings, earnings per share, and net assets per share over its duration. This latest win reinforces the group’s position in the infrastructure and engineering sector and highlights its capability to handle complex and specialized projects in collaboration with a trusted partner like Worktime Engineering. The successful execution of this submarine cable project with a major national player like TNB is a strong vote of confidence in the joint venture’s expertise and could pave the way for securing similar high-value projects in the future, thereby contributing to the company’s long-term growth trajectory and stability.
