DRB-HICOM's unit anticipates contract extension worth RM350 mil

by **Cals** Fri 20 Mar 2015, 02:52

DRB-HICOM's unit anticipates contract extension worth RM350 mil

By Ahmad Naqib Idris / theedgemarkets.com | March 19, 2015 : 7:48 PM MYT

KUALA LUMPUR (March 19): [size=14]DRB-HICOM Bhd ([You must be registered and logged in to see this image.] Financial Dashboard)’s unit CTRM Aero Composites Sdn Bhd has exchanged a letter of intent with UTC Aerospace Systems for the extension of CTRM’s supply of three existing work packages.

In a filing with the exchange today, DRB-HICOM (fundamental: 1.5; valuation: 1.8) said the discussions between the two parties are ongoing, during the Langkawi International Maritime and Aerospace Exhibition (LIMA).

The group anticipates the tenure of the contracts — which was awarded in 2003 with a contract value of approximately RM4.2 billion — to be extended up to seven years, with an average annual value of RM350 million.

The contracts entail the supply of major composite structures, including fan cowls, inlet cowl panels and thrust reversers.

“We are very excited about our discussions regarding the potential continuation of our work with UTC Aerospace Systems.

“If awarded, this work could provide tremendous opportunities for our company to build capacities and capabilities in this high value and high technology business,” said DRB-HICOM group managing director Tan Sri Datuk Sri Mohd Khamil Jamil.

DRB-HICOM closed 1 sen or 0.5% lower at RM2, with a market capitalisation of RM3.89 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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