PETALING JAYA: Annum Bhd’s (formerly Cymao Holdings Bhd) indirect wholly owned subsidiary Annum EPCC Sdn Bhd (AESB) yesterday entered into a collaboration agreement with Greentech IOT Technology Sdn Bhd (GITSB) for the Sarawak Water Supply Grid Program amounting to RM62.25 million.
The project is a proposed pipeline from Salim Water Treatment Plant, Sibu Water Board to Kanowit Sibu Division. Its work scope includes the provision of supply, laying, testing and commissioning of the pipelines.
The collaboration agreement entails AESB to entitle for 50% of the net profit in relation to the project, with the balance by GITSB.
In a statement, the company said this collaboration is in line its continuous effort to expand its construction business which includes engineering, procurement, construction and commissioning.
“This collaboration would be able to help the company to build its credentials and track record in the construction industry, as well as providing additional revenue stream and enhance the company’s earnings base,” it said.
The collaboration provides an opportunity for Annum to participate in government-related projects that would enhance the company’s construction portfolio and strengthen its position as a construction player in the construction industry.
“The successful execution of this project would build a track record for the company to undertake or bid for other government projects.
The company believes this collaboration is of benefit to the group in the long run. The collaboration demonstrates the added value of its growth potential in the geographical expansion of its businesses, especially in East Malaysia.
The company expects this collaboration will contribute positively to the group’s future earnings and value to the shareholders. Moving forward, the group will focus on high margin businesses especially infrastructure and water base industries in East Malaysia, and explore more partnership projects to sustain the group’s earnings.
This project is part of the initiatives by the Sibu Water Board to address the inadequate water supply to meet the demand given the fast-growing population.