Benalec shares up following RM204mil contract win

KUALA LUMPUR: Shares of Benalec Holdings advanced at mid-morning on Tuesday after the group bagged a RM204mil development project from Oriental Boon Siew (M) Sdn Bhd.

At 10.35am, its shares rose two sen to 91.5 sen with some 3.99 million shares traded between to 91.5 sen and 93 sen.

The FBM KLCI was down 1.25 points to 1,859.29. Turnover was 368.17 million shares valued at RM211.87mil. There were 259 gainers, 208 decliners and 298 counters unchanged.

Benalec’s subsidiary Benalec Sdn Bhd won the contract for the construction, completion and maintenance of coastal reclamation and associated works in Malacca.

The contract sum excludes rock revetment works. The project is scheduled to start in the third quarter of 2014 and is expected to complete by the fourth quarter of 2016.

Meanwhile, AmResearch has maintained its Buy on Benalec with a fair value of RM1.31 a  share, which pegs the stock at a 45% discount to its estimated sum-of-parts value.