TeleChoice International's Malaysian unit Planet Telecoms Managed Services has renewed a supply chain contract with U Mobile valued at around S$1.3 billion, up from the original S$500 million signed in February 2024. The three-year deal, announced on Oct 26, carries an option to extend by two more years and covers end-to-end 4PL services including stock management, warehousing, order fulfilment, distribution, inventory financing and delivery insurance. TeleChoice expects a positive impact on consolidated net tangible assets per share and earnings per share for the financial year ending Dec 31, 2027. CEO Pauline Wong said the group will invest further in people, systems and automation as U Mobile expands its Ultra 5G network. Shares closed flat at S$0.198.
According to businesstimes.com.sg, Singapore-listed TeleChoice International has secured a contract renewal worth around S$1.3 billion with Malaysian telecoms operator U Mobile, more than doubling the value of the original agreement.
The renewed deal was announced in a bourse filing on Monday, Oct 26. It runs for three years, with an option for a further two-year extension, giving the contract a potential five-year horizon.
The agreement is signed between U Mobile and TeleChoice’s Malaysian unit, Planet Telecoms Managed Services (PTMS). Under its terms, PTMS provides fourth-party logistics (4PL) services, meaning it manages and designs U Mobile’s entire end-to-end supply chain.
Scope covers inventory financing and insurance
The contract assigns PTMS responsibility for U Mobile’s device supply chain from end to end, spanning stock management, warehousing, order fulfilment and distribution.
Beyond physical logistics, PTMS also finances the device inventories and provides insurance coverage for deliveries, according to the announcement. The scope reflects a full 4PL mandate rather than a conventional logistics arrangement.
The original contract, signed in February 2024 and due to expire in February 2027, was worth S$500 million. The renewal therefore represents a substantial uplift in contracted value for the Singapore mainboard-listed info-communications products and services provider.
Earnings impact expected in FY2027
TeleChoice said the renewal is expected to have a positive impact on the group’s consolidated net tangible assets per share and consolidated earnings per share for the financial year ending Dec 31, 2027.
The company described the partnership as an important growth driver for its Malaysian business. The contract is expected to enhance group earnings and net tangible assets in FY2027, according to the filing.
“As U Mobile extends the nationwide reach of its Ultra 5G network, we will invest further in our people, systems and automation. We will also build on this experience to take our managed services business further across the region.” â Pauline Wong, president and CEO of TeleChoice
Wong’s comments point to automation and regional expansion as priorities tied to the enlarged mandate, with the managed services business positioned as the vehicle for growth beyond Malaysia.
Shares close flat
Shares of TeleChoice closed trading flat at S$0.198 on Monday, the day the contract renewal was disclosed to the Singapore Exchange.
The stock’s muted reaction came despite the size of the deal relative to the prior contract. The renewal lifts the contracted value from S$500 million to roughly S$1.3 billion, with earnings recognition weighted toward the financial year ending Dec 31, 2027.
TeleChoice provides info-communications products and services and is listed on the Singapore mainboard, with PTMS serving as its Malaysian managed services arm.
Source: businesstimes.com.sg
Compiled from international media by the SCI.AI editorial team.
