KUALA LUMPUR: Shares in Prestariang Bhd continued to slide in early trade in the wake of cancellation of the RM3.5bil national immigration control system (SKIN) concession.
The third most actively traded counter, Prestariang shed 6.56%, or two sen to 28.5sen with 14.7 million shares done.
Prestariang’s shares plunged 15 sen yesterday to 30.5 sen, its lowest level in nearly seven years as panic selling ensued after news broke on the project cancellation.
The Home Ministry confirmed the Immigration Department's RM3.5bil national immigration control system (SKIN) concession has been cancelled.
Yesterday, during the Immigration Day celebration, Home Minister Tan Sri Muhyiddin Yassin announced that the cancellation of the SKIN project was done to create a new system that was comprehensive, effective and user-friendly.
However, Prestariang said that it had not been informed by the government of the matter, in a filing with Bursa Malaysia.
CGS-CIMB Research said the news was a negative surprise to the house as it had not expected such an outcome.
It added that Prestariang announced that SKIN was not in default of any conditions of the concession agreement and has yet to receive any notice from the Home Minister about SKIN project.
“This is a negative surprise and unexpected outcome as we had predicted SKIN to be a major earnings driver for the group.
“We cut FY18-20F earnings by up to 88% to reflect the loss of SKIN’s profit, lower its target price to 26 sen and downgrade the stock from Add to Reduce,” CGS-CIMB said.