SAM Engineering unaware of reason for UMA

PETALING JAYA: Sam Engineering & Equipment (M) Bhd says it is not aware of any reason for the unusual market activity (UMA) that resulted in the sharp rise of its share price in recent months.

The precision machining, equipment integration and automation solutions provider issued a statement yesterday in response to an UMA query from Bursa Malaysia over the rapid increase of the company’s share price recently.

SAM Engineering’s shares rose four sen yesterday to close at RM7.90.

The closing price yesterday represented a gain of almost three-fold from RM2.826 a year ago.

Year to date, the counter had tripled from RM2.546 since the beginning of 2015.

SAM Engineering’s shares started its uptrend after breaking the RM3 threshold in early May.

In June, the company declared a single-tier special dividend of 20.26 sen and a single-tier first interim dividend of 11.94 sen per share in respect of its financial year (FY) ended March 31, 2015.

For FY2015, SAM Engineering’s net profit rose 22.3% to RM34.63mil from RM28.32mil in the preceding year, with its earnings per share rising to 42.42 sen from 38.84 sen previously. The group’s revenue in FY2015 was, however, lower at RM451.52mil, compared with RM452.76mil in the preceding year.

In the first quarter of FY2016, SAM Engineering’s net profit rose almost nine-fold to RM13.25mil from RM1.57mil in the corresponding quarter of the preceding year. The group’s earnings growth during the period in review was mainly attributable to higher group revenue and favourable foreign exchange.

SAM Engineering saw its revenue increase 44.3% to RM134.46mil in the first quarter of FY2016, driven by the equipment-manufacturing segment, compared with RM93.16mil in the previous corresponding period. The group’s EPS rose to 15.71 sen from 2.09 sen.

In the UMA query yesterday, Bursa Malaysia requested SAM Engineering to disclose any corporate development relating to its group’s business and affairs that has not been previously announced including those in negotiation or discussion stage that might account for the rise in share price.

The stock market regular also asked SAM Engineering to clarify whether there is any rumour or report concerning the business and affairs of the group, and if it was aware of any other possible explanation to account for the trading activity.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Next In Business News

Trading ideas: Genting Malaysia, MQ Technology, Jiankun International, Yinson, AME REIT and Suria Capital
MRCB secures contract from Sentral REIT for car park operations
Mestron bags RM10mil deal from Tamasco
MNRB partners MBSB in takaful offerings
AME-REIT buys three industrial properties
Bond and sukuk issuance concluded
Umar to helm coalition of CEOs
Yuan jumps past seven per US dollar as Covid curbs ease
Improbable bets on break of Hong Kong dollar peg adding up
AG&P aims for first LNG terminal in India by end-2024

Others Also Read