Univision wins contract to replace CCTV on Hong Kong's MTR lines
(ShareCast News) - UniVision Engineering has won a contract to provide closed-circuit television for Hong Kong's MTR public rail system that is worth around ten times the company's sales last year.
UniVision, which is based in Hong Kong and has been listed in London since 2005, was awarded the contract by MTR Corporation Limited to immediately begin replacing the CCTV on 11 of train lines on the Hong Kong network and the light rail line.
The total value of the contract, which is expected to be completed in around November 2023, is HK$389.4m (£38.1m), while last year Univision made £3.87m of sales and £0.14m of profit.
Chairman Stephen Koo said the company, which he founded in 1979 and floated on AIM 26 years later, has been "preparing a long time" for such a contract and he was understandably delighted to have beaten off competition from other bidders.
"We have a long relationship with MTR and have many years' experience in installing and maintaining its CCTV system. I am confident that we will be able to fulfill all requirements under the contract in a professional manner.
"I am delighted for our shareholders as the value of this contract is transformative to the Company and I look forward to being able to report on our progress in fulfilling the contract in due course."
The contract provides the for the replacement works of the CCTV systems for Island Line (ISL), Kwun Tong Line (KTL), Tsuen Wan Line (TWL) ), Tseung Kwan O Line (TKL), Airport Express (AEL), Tung Chung Line (TCL), Disneyland Resort Line (DRL), East Rail Line (EAL), Ma On Shan Line (MOL), West Rail Line (WRL) and 22 stops of Light Rail (LRL), and the provision of new CCTVs for 47 stops of LRL.
The existing analogue CCTV system installed in the stations along ISL, KTL, TWL, TKL, AEL, TCL, DRL, EAL, MOL and WRL and the Internet Protocol (IP) CCTV system installed at 22 stops in LRL will be replaced with a unified IP-based CCTV system.
Univision's shares zoomed up 33% to 3.16p by mid afternoon on Thursday, topping 4p at one point. It's placing price in 2005 was 3p and it's all time high was 4.75p in 2006.
Sadly after waiting 38 years since he founded the company, Koo will not get as much of the rewards as he might have.
In September he had to sell a 41% stake in UniVision's for 32.8m RMB to real estate developer Nan Ning Hai Li Real Estate Development and another 10% stake to Nan Ning Hai Li's legal representative Xin Hai for 8m RMB, as part of a settlement after Koo and the company were sued by Nan Ning Hai Li.
However after the sales Koo still held 84m shares, equating to a none-too-shabby 21.9% stake in the company.