KUALA LUMPUR: Shares in Boustead Heavy Industries Corp Bhd (BHIC) rose over 8% after its indirect unit secured a RM154.3mil contract from the Defence Ministry.
The counter added 8.45%, or six sen to 77 sen, its highest since early April, with 1.17 million shares traded.
Boustead DCNS Naval Corp Sdn Bhd (BDNC) — 60%-owned by BHIC’s unit BHIC Defence Technologies Sdn Bhd and 40%-owned by France’s Naval Group — received the letter of award, which stated that it will be providing in-service support for prime minister's class submarines for the Royal Malaysian Navy.
The one-year contract started on Jan 1, 2020, the group said, adding that a formal contract between its unit and the ministry will be signed at a later date.
BHIC said the contract will contribute positively to the group’s current year earnings.
BHIC swung to the black for the first quarter ended March 31, with a net profit of RM20.38mil, from a net loss of RM4.3mil in the previous corresponding quarter.
Revenue was 21.4% higher at RM44.05mil from RM36.3mil a year before.
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