KUALA LUMPUR (Aug 28): KNM Group Bhd has clinched an engineering, procurement, construction and commissioning (EPCC) contract worth RM268.5 million from Cypark Sdn Bhd.

In a filing with Bursa Malaysia today, KNM said its wholly-owned subsidiary, KNM Process Systems Sdn Bhd (KNMPS) has secured the contract through SHK Consortium, a consortium company formed between KNMPS and Hitachi Zosen Corporation.

It added KNMPS has today received a letter of award from Cypark to undertake EPCC works in respect of the Solid Waste Modular Advanced Recovery and Treatment Systems Waste Management Solutions at Ladang Tanah Merah, Negeri Sembilan, Malaysia (SMART WTE System).

According to KNM, the contract covered the offshore portion for the EPCC works in the sum of 3.893 billion yen (equivalent to about RM135.38 million) and onshore portion of the EPCC works in the sum of RM133 million only.

KNM said KNMPS will be responsible for all onshore portions of the EPCC works while Hitachi Zosen Corporation will be responsible for all offshore portion of the EPCC works.

The turnkey solutions company for the oil and gas players estimates the EPCC works to take 27 months. The commencement date of the project shall be within 42 days from the date of acceptance of the letter of award.

KNM said the project is expected to contribute positively to its earnings for the financial year ending Dec 31, 2015 (FY15), FY16 and FY17.

Shares in KNM (fundamental: 0.85; valuation: 1.7) closed unchanged today at 48 sen, with 33.89 million shares changing hands. It has a market capitalisation of RM930.69 million.

(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.)