Kenanga Research is mildly positive on the contract value which falls within its expectations of annual revenues totalling RM18 to RM19 million for the trading segment in FY23 and FY24.
KUCHING (Nov 9): Researchers with Kenanga Investment Bank Bhd (Kenanga Research) are mildly positive on OCK Group Bhd (OCK) securing a RM48.7 million contract from the Ministry of Education (MOE) for the rental of eco-friendly ICT hardware on a lease-to-use basis.
The ICT equipment supplied by OCK will be used for the teaching and learning needs of KPM’s school computer laboratories under Phase 3 in Sarawak.
The contract duration is for a period of 65 months from October 2023 to March 2029.
The job scope includes the supply, installation, testing and hardware commissioning for four months; leasing of the laptops for 60 months; and return period of one month.
“We are mildly positive on the contract value which falls within our expectations of annual revenues totalling RM18 to RM19 million for the trading segment in financial years 2023 (FY23) and FY24,” Kenanga Research said.
“We estimate contributions of circa one and four per cent to group earnings from this contract in FY23/FY24 respectively.
Kenanga Research was mildly positive that this contract will generate recurring revenue for the group from a reliable party, which is the MOE.
“More importantly, the eco-friendly ICT hardware provided by OCK meets green requirements and benefits the student communities in Sarawak. Hence, this provides a boost to OCK’s ESG credentials,” it added.
“We continue to like OCK given that it is well positioned to benefit from Jendela and 5G roll-out projects in Malaysia and Asean; it has strong earnings visibility as 63 per cent of its top line emanates from recurring income derived from telco tower maintenance and leasing contracts; and it may potentially expand to new regional markets such as Indochina, Kalimantan and the Philippines.”