EITA Resources Bhd announced that it has secured three contracts worth a combined RM12 million to supply and install elevator systems for development projects across the Klang Valley.
The engineering and elevator specialist said its wholly owned subsidiary, EITA Elevator (Malaysia) Sdn Bhd, received the contracts from an undisclosed client identified as Company A.
The scope of work includes the supply, installation, testing and commissioning of elevator systems for several projects, including a luxury residential development in Kuala Lumpur’s prime KLCC precinct.
The projects are expected to be completed over a three-year period, subject to the finalisation of the work programme.
EITA said the contract awards are not expected to have a material impact on its earnings for the financial year ending Dec 31, 2026, but will contribute positively over the duration of the projects.
M+ Global Research viewed the contract wins positively, saying they further reinforce EITA’s technical expertise and reputation in delivering high-specification elevator systems for premium property developments.
The research house noted that while the contracts are well within its existing revenue assumptions for FY2027 and FY2028, they provide greater earnings visibility for the group’s core elevator division through FY2029.
Based on a conservative net profit margin assumption of 5%, M+ Global estimates the projects could generate approximately RM600,000 in cumulative net profit over the three-year execution period, or about RM200,000 annually.
As the expected earnings contribution is already incorporated into its forecasts, the research house maintained its financial projections unchanged.
M+ Global reiterated its “Buy” recommendation on EITA Resources with an unchanged target price of RM0.60 per share.
The target price is based on an 11-times price-to-earnings multiple applied to its FY2027 earnings per share forecast of 5.43 sen.
The research house said the latest contract wins underscore EITA’s continued ability to secure projects in the premium property segment while supporting long-term order book replenishment and recurring earnings visibility.
