The Board of Directors of PESTECH (“Board”) wishes to announce that its wholly-owned subsidiary company, PESTECH Sdn Bhd (“PSB”), had on 8 November 2019 (late evening), received a Letter of Award (“LOA”) from Tenaga Nasional Berhad (“TNB”) for supply and delivery of smart meter for Smart Billing Project Deployment Phase 2 (Selangor, Kuala Lumpur, Putrajaya and Cyberjaya) for years 2019 and 2020, at a total contract amount of RM38,375,361.36 (Ringgit Malaysia: Thirty Eight Million and Three Hundred and Seventy Five Thousand Three Hundred and Sixty One and Cents Thirty Six only) (hereinafter referred to as the “Contract”). 


The Contract shall be effective from the date of the LOA and duration of the Contract is two (2) years.


Smart meter or Advanced Metering Infrastructure (“AMI”) is an electronic device that records consumption of electricity, and communicates the information to TNB for monitoring and billing through radio frequency.   Aligned with TNB’s plan to equip a total of 9.1 million households across Peninsular Malaysia with smart electric meter by year 2026, PESTECH aims to revolutionise technologies in used in power distribution and take projects that are at the forefronts of the smart grid area.  The award of this Contract by TNB to PSB commensurate PESTECH’s direction in its foray to smart grid area involving both single-phase and 3-phase smart meters.  This award opens up the opportunity for the Group to tap on more prospects in the smart metering market to position itself for other phases of requirements in TNB as well as in the region.


The Contract will contribute positively towards the revenue and earnings of PESTECH in accordance to the stages of the progress to be recognized in the financial years ending 30 June 2020 to 30 June 2021 and is expected to contribute positively to the future earnings and net asset per share of the Company.


PESTECH does not foresee any exceptional risk other than the normal operational risk associated with the Contract such as availability and changes in the price of raw materials. The Company will take necessary steps to mitigate the risks as and when it occurs.


None of the Directors and/or Major Shareholders and/or persons connected to them, has any interest, direct or indirect in the Contract.


The Board is of the opinion that the Contract is in the best interest of the Company.


This announcement is dated 11 November 2019.