Bright outlook for Jati Tinggi

PETALING JAYA: Jati Tinggi Group Bhd’s unbilled order book has reached a record RM1.5bil following its largest contract win, strengthening its position to secure larger power infrastructure projects.

Tenaga Nasional Bhd (TNB) awarded the RM568.2mil contract to a three-party joint venture (JV), with Jati Tinggi undertaking 55% of the works, worth about RM312.5mil.

The JV is led by its subsidiary, Jati Tinggi Holding Sdn Bhd, along with Kerjaya Prospek (M) Sdn Bhd and Betapec Sdn Bhd, which will undertake 25% and 20% of the works respectively. The project is targeted for completion by October 2028.

AmInvestment Bank (AmInvest) Research noted the contract marks Jati Tinggi’s first 500kV substation project, strengthening its track record for future extra-high voltage infrastructure tenders.

With the latest award, the company’s year-to-date contract wins have reached RM902.9mil, reflecting strong order-book replenishment.

The research house added Jati Tinggi’s technical capabilities are now more comprehensive, spanning underground cables, overhead transmission lines, and substations. AmInvest Research said more such opportunities may be available under Regulatory Period 4 (RP4).

“We anticipate further 500kV contract opportunities, with upcoming projects carrying indicative contract values of RM300mil-RM500mil each, supported by TNB’s RM42.8bil RP4 capital expenditure,” AmInvest Research said in a note.

AmInves Research maintained its “buy” call on Jati Tinggi with an unchanged target price of RM2 a share. It kept its earnings forecasts for the firm unchanged.