KUALA LUMPUR: Coastal Contracts Bhd
emerged as one of the top 10 gainers on Bursa Malaysia in early trade Thursday.
The counter rose 8.44%, or 13 sen, to RM1.67, with 213,200 shares traded as of 9.35 am. It has gained over 11% in the past five days.
Coastal Contracts' wholly-owned subsidiaries, Coastal Solar Sdn Bhd (CSSB) and Pleasant Engineering Sdn Bhd, together with Bina HT Sdn Bhd (BHSB), recently received a letter of notification of acceptance of offer (LON) from the Energy Commission Sabah.
The notification pertains to the development of a 15.00-megawatt alternating current large-scale solar photovoltaic plant in Sabah.
RHB Research is optimistic about Coastal Contracts’ announcement of its maiden solar project, viewing it as a strategic entry into the renewable energy sector and a move to diversify its revenue stream.
RHB Research maintained its “buy” call on Coastal Contracts with a target price of RM1.67, based on a six-times estimated FY2025 price-earnings ratio and an 8% environmental, social and governance discount.
For the third quarter ended Sept 30, Coastal Contracts posted a net loss of RM49.07mil compared with a net profit of RM79.5mil, while quarterly revenue declined to RM6.3mil from RM58.4mil in the same quarter last year.
