GCAP secures additional RM8.4m in transport chartering contract from MINDEF

BURSA Malaysia’s Main Market-listed G Capital Bhd had on Dec 30, 2022 via its wholly-owned subsidiary GPB Corporation Sdn Bhd signed a supplementary agreement on the provision of transportation with the Defence Ministry (MINDEF).

A filing with Bursa Malaysia yesterday (Jan 3) showed that the contract tenure has been extended for another one year till Dec 31, 2023 with an additional contract value of RM8.4 mil which brings the total contract value to RM52.6 mil from Jan 1, 2020 to Dec 31, 2023.

This is in relation to the current contract of GPB to charter school buses for the children of the Malaysian Armed Forces nationwide, including the Southern, Eastern, Northern, Sabah and Sarawak zones of Malaysia from Jan 1, 2020 to Dec 31, 2022 for a contract value of RM44.2 mil.

“The endemic phase has normalised demands of chartered school buses for the children of Malaysian Armed Forces nationwide,” commented GCAP’s executive director Datuk Yap Yee Ping.

Datuk Yap Yee Ping

“It is an honour to serve our national heroes and we believe the supplemental agreement is a testament to our commitment to top-notch quality services we are providing to our customers in our undertakings.”

According to Datuk Yap, re-opening the economy and resumption of schooling nationwide had led to recovery in demand for the group’s chartering services.

“A good beginning is half the battle; I’m pleased to kick start 2023 by announcing the supplemental agreement taking place. We will continue striving for excellence to what makes people better off because of our presence,” she added.

In recent times, GCAP has solidified its foothold in the renewable energy segment to reduce the group’s reliance on its transportation services business segment.

This is evident in GCAP having two strong RE assets on its plate – a mini-hydropower plant through Perak Hydro Renewable Energy Corporation Sdn Bhd (PHREC) and solar power projects through Solarcity Malaysia.

At 4.02pm, GCAP was unchanged at 46.5 sen with 69,800 shares traded, thus valuing the company at RM149 mil. – Jan 4, 2023

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