Meanwhile, RHB said OCK would see its cumulative number of Indonesian sites under maintenance increase to more than 32,000 from 26,000 in the previous year.
PETALING JAYA: OCK Group Bhd is eyeing additional jobs from the government’s National Fiberisation and Connectivity Plan (NFCP) 2 through a partnership with a telecommunications service provider (telco), according to RHB Research.
The company had earlier clinched a RM60mil network equipment job under the NFCP 1 when it collaborated with the telco.
“The second phase of the NFCP involves 500 sites, with an indicative value of more than RM1bil. The award will likely take place in the third quarter, with the final submission deadline on Jun 15, ” the research house said.
Meanwhile, RHB said OCK would see its cumulative number of Indonesian sites under maintenance increase to more than 32,000 from 26,000 in the previous year.
The company had recently clinched a two-year network site maintenance deal worth RM5mil a year in Indonesia.
“We see the new contract as further strengthening the group’s recurring revenue, which should widen to 53% in the year 2020, ” it said.
RHB Research said it had trimmed OCK’s financial year 2020 forecast (FY20F) core earnings by 4.2% to reflect weaker billings in the second quarter.
“We lift FY21F-22F’s earnings per share by 2% to 7% to account for the higher towerco tenancies and growth from new key projects, ” it said.
