KUALA LUMPUR (March 10): Toyo Ventures Holdings Bhd regained some upward momentum after the stock fell off from the recent peak of RM1.61 in February.

The stock soared to an intra-day high of RM1.45 in the afternoon trading session against Thursday’s (March 9) closing of RM1.30. It ended the week at RM1.41, up 11 sen or 8.5%, with a trading volume of 3.2 million shares.

Year to date, Toyo Venture’s share price has gained 43% from 98 sen at the end-2022.  

Toyo Venture seems to have kickstarted the groundworks for its power plant project that it secured in Vietnam more than 15 years ago. 

On Thursday, Toyo Ventures said its wholly-owned unit Song Hau 2 Power Co Ltd was awarded an US$86 million (RM388.5 million) operation and maintenance contract to Power Engineering Consulting Joint Stock 2 (PECC2) for site works, technical services and advisory services.

This is the second contract within a week. 

Prior to that, Toyo Venture was awarded a US$2.42 billion contract to a consortium of Sunway Construction Sdn Bhd and PECC2 to construct Song Hau 2 Thermal Power Plant located at Song Hau Power Generation Centre, Hau Giang Province, Vietnam. 

In the filing dated March 1, Toyo Venture said that Export-Import Bank of Malaysia Bhd had offered to be the mandated Lead Arranger and Bookrunner and coordinating arranger for the syndicated financing facilities of up to US$2.42 billion for the construction of the power plant, vide its letter dated Nov 14 last year.

The project is scheduled for completion in four and a half years from the date Toyo Ventures issues a notice to proceed to the contractor.

On the other hand, Toyo Ventures was also in the news recently as Bursa Malaysia publicly reprimanded the company for the withdrawal of its proposed final dividend per share of one sen for the financial year ended Sept 30, 2021 (FY2021). The company declared the dividend on Nov 30, 2021. 

Bursa stated that the withdrawal was in contravention of paragraph  8.26(1) of the Bursa Malaysia Securities Main Market Listing Requirements, as a listed issuer must not make any subsequent alteration to the dividend entitlement once the dividend had been declared. 

The board of directors at the material time of the breach were Yusoff Daud, Song Kok Cheong. Chew Cheong Loong, Lim Soek Fun, Tham Kut Cheong, Chan Kee Eng, Song Hsiao May and Lim Guan Lee. 

The group cancelled the dividend plan in January last year amid insufficient retained earnings of the company, which arose from certain adjustments made in its audited financial statements for the 15-month financial period ended  Sept 30, 2021. 

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