KJTS Secures Another 20-Year Long-term Projects From Central Group

KUALA LUMPUR, 25 SEPTEMBER 2024 – KJTS Group Berhad ("KJTS" or the "Company"), a building support services provider in Malaysia, Thailand and Singapore, is pleased to announce that KJTS's subsidiary, KJTN Engineering Co., Ltd. ("KJTN Engineering") has signed an agreement with Central Plaza Hotel Public Company Limited ("Centel") for the retrofit works, provision of operation and maintenance services for the chiller plant, and supply of chilled water at Centara Grand Mirage Beach Resort Pattaya for a 20-year period ("Agreement").

Centel, a Thailand's hospitality business entity and has been operational for over 31 years, is a part of the esteemed Central Group, one of Thailand's largest private commercial conglomerates with more than 50 subsidiaries with diverse investments in various corporations domestically and internationally. Central Group's business sectors include retail, property development, brand management, hospitality, food and beverage sectors, and digital lifestyle. This partnership underscores KJTN Engineering's expertise and commitment to delivering innovative and eco-friendly solutions in the building support services industry.

This project follows KJTN Engineering's first contract with Central Group at Centara Grand Hotel at Central World in Bangkok, Thailand, a 15-year agreement for retrofit works, provision of operation and maintenance services of the chiller agreement and supply of chilled water which was signed on 31 January 2024..

Under the terms of the Agreement, KJTN Engineering will finance the retrofit works amounting to THB 38.98 million which is equivalent to approximately RM 4.92 million. During the operational and maintenance services period, KJTN Engineering will charge a fixed monthly fee of THB 620,072 which is equivalent to approximately RM 78,230. In addition, a monthly variable fee will be charged based on the quantity of chilled water supplied. The total fixed fee over 20 years will be THB 148.82 million which is equivalent to approximately RM 18.78 million.

The retrofit works are set to commence on 1 October 2024 and are expected to complete by 31 May 2025. The O&M services and chilled water supply will commence on 1 June 2025 and are expected to complete by 31 May 2045, at which time ownership of the chiller plant will be transferred to Centel.

Director of KJTN Engineering Co., Ltd., Mr. Kitti Chungsawanant said, "We are incredibly grateful that Central Group has entrusted us with yet another one of their esteemed hotels. This reflects the trust they have in our expertise and the quality of our cooling energy management services. We look forward to continuing our strong relationship with Central Group and hope to expand our work across more of their prestigious assets."

This venture is poised to bolster KJTS's position in the market, reflecting the strategic focus on expanding the Group's services and influence across Malaysia, Thailand and Singapore.

Currently, KJTS announced a profit after tax of RM3.5 million for its second quarter ended 30 June 2024, with significant contributions from its cooling energy segment, generating revenue of RM11.95 million, and cleaning services, bringing in revenue of RM14.23 million. These strong results highlight the Group's continued growth and commitment to delivering high-quality services across Malaysia, Singapore, and Thailand.

As of 5:00 P.M. 24 September 2024, the share price of KJTS closed at RM0.66, representing a market capitalisation of RM454.1 million.