The company has previously guided for a job award in relation to the expansion of the water treatment plant. There are five bidders: from China, India, Australia, Rohas Tecnic Bhd-Muhibbah Engineering (M) Bhd and MMC Corp Bhd-Malaysian Resources Corp Bhd. Rohas 49%-owned mini-hydropower plant in Indonesia is expected to start contributing in FY20, a delay from the second quarter of FY19 due to unusual raining reason. Management guides that the earnings contribution to Rohas is expected to be RM4 million annually. We reckon with the completion of its legacy contracts, earnings should grow moving forward, driven by better margins at HG Power Transmission Sdn Bhd, new EPCC jobs and stronger tower orders.

Source: The Edge Markets January 23, 2020 03:00 UTC