· The 14-month contract, which takes effect from 1 November 2021 to 31 December 2022, is extendable upon request.
· Healthier prospect for Aqua-Flo with the new order book expected to contribute positively to KPS’ earnings. 

SHAH ALAM, Malaysia, Oct 22 (Bernama) -- Kumpulan Perangsang Selangor Berhad (“KPS” or “the Company” or “the Group”, Bursa: 5843; Bloomberg: KUPS MK; Reuters: KPSB.KL) today announced that its 51% subsidiary, Aqua-Flo Sdn Bhd (“Aqua-Flo”), clinched a supply contract from Pengurusan Air Selangor Sdn Bhd (“Air Selangor”). Valued at approximately RM91.6 million, the contract will run for 14 months from 1 November 2021 to 31 December 2022.
 
Aqua-Flo, having established a reputation in the water industry as one of the country’s major water chemical companies, shall supply, transport, and deliver water chemicals to water treatment locations specified by Air Selangor or its subsidiary and associated companies. The contract, which was secured via an open tender, bears an option for extension upon the request by Air Selangor. It is expected to contribute positively to KPS net assets and earnings starting for financial years ending 31 December 2021 to 2022. 

KPS’ Managing Director/Group Chief Executive Officer, Ahmad Fariz Hassan, said:

“We are excited to continue to build on the strong business relationships with Air Selangor, committed to providing long-term solutions and sustainable growth of the water industry. The business aspect notwithstanding, winning this contract is instrumental in executing the Group’s overarching sustainability agenda. We take serious consideration to embed, be it directly or indirectly, a significant environmental aim into our business strategy and objective of ensuring the availability and sustainable management of water. This strategy execution is in line with one of the United Nations Sustainable Development Goals. 

From a commercial perspective, the increasing demand for chemicals by the largest water operator in Malaysia display Air Selangor’s confidence in Aqua-Flo’s playing an important role in ensuring the sustainability of clean and safe water supply in Selangor. Backed by our consistent track record in providing quality products at competitive prices, the new contract cements further Aqua-Flo’s status as one of the market leaders in the supply of water treatment chemicals in the country.”

As a local pioneer in the provision and supply of chemicals to water, waste, and sewage treatment industries, Aqua-Flo enjoys the advantage of technological and market leadership, priding itself in providing quality service and products by adopting sustainable business practices. It supplies chemicals such as Liquid Chlorine, Polyaluminium Chloride and Hydrated Lime and Liquid Alum. Positioned to benefit from the increasing demand for water treatment chemicals leading to a sustainable water supply in the country, Aqua-Flo has been extending its services to water treatment plants in all other states in Malaysia. 

“This contract builds on Aqua-Flo’s ambition to steadily grow market share in the potable water business, leveraging on the expected increase in water treatment plant capacity in meeting the rising demand for safe and reliable treated water. Before this, Aqua-Flo had earlier won a two-year contract worth approximately RM162.5 million by Air Selangor from 1 November 2018 until 31 October 2020, which was later extended for another 12 months until 31 October 2021 for an additional RM81.2 million approximately.  

Moving forward, we expect organic growth in Aqua-Flo’s order book as it continues to strengthen the traction in its chemical sales, as well as increase revenue from the water meter and equipment business segments from the existing and new customers,” Ahmad Fariz concluded on Aqua-Flo’s business prospect in the immediate term.  

About Kumpulan Perangsang Selangor Berhad (www.kps.com.my) 

Incorporated on 11 August 1975, Kumpulan Perangsang Selangor Berhad (“KPS” or “the Company” or “the Group”) is a public limited liability company listed on the Main Market of Bursa Malaysia Securities Berhad under the Industrial Products & Services Sector. KPS has core investments in the Manufacturing Sector and businesses in the Trading, Licensing, and Infrastructure sectors. While strengthening the Company through optimising returns, KPS is committed to providing significant contributions towards sustainable economic, environmental, and social development for the benefit of all stakeholders.
 
Source: Kumpulan Perangsang Selangor Berhad

FOR MORE INFORMATION, PLEASE CONTACT: 
Name: W. Asmanizan W. Ahmad Najib
Manager,
Investor Relations & Strategic Communication
Tel: +603 5524 8400
Email:  asmanizan@kps.com.my

Name: Zul Mawardi
Director,
Investor Relations & Strategic Communication
Tel: +603 5524 8400
Email:  zul@kps.com.my 

--BERNAMA