Kumpulan Kitacon Berhad has announced that its wholly-owned subsidiary, Kitacon Sdn. Bhd., has been awarded a Letter of Award (LOA) by Rawang Lakes Sdn. Bhd. The contract, valued at RM54.50 million, pertains to the Main Building Works for a development project in Bandar Tasik Puteri, Mukim Rawang, Selangor.

The project, designated as Phase 5B, includes the construction of 186 two-storey terrace houses. Specifically, the scope comprises 104 units of Type RT1, 82 units of Type RT3, and a single TNB substation. The construction will take place on Lot PT 50867, Block 5, within the administrative region of Majlis Perbandaran Selayang.

Construction is scheduled to begin on 1 August 2024 and is expected to be completed within 20 months from the start date.

In terms of financial impact, this contract will not affect Kumpulan Kitacon Berhad's share capital or shareholding structure. However, it is anticipated to positively influence the company's earnings and net assets per share for the financial years ending 31 December 2024 and beyond.

The company acknowledges potential risks associated with the contract, including economic, political, and regulatory changes, as well as operational challenges such as completion risk and potential shortages in materials and skilled labour. The Group plans to implement measures to mitigate these risks.

There are no direct or indirect interests in the contract from the directors, major shareholders, or connected parties.