KUALA LUMPUR (March 14): Shares of construction company Eversendai Corp Bhd went on a roller-coaster ride on Thursday, tumbling 31% from a high of 45.5 sen to hit a low of 31.5 sen apiece.
The counter rose as much as 16.7% to 45.5 sen during the morning session — its highest since January 2019 — following contract wins totalling RM5.4 billion. At market close, the momentum in its shares waned, dropping by 15.38% or six sen to 33 sen, valuing it at RM257.7 million.
Trading volume jumped 45% to 188.92 million from 130.42 million the day before, making it the second most actively traded stock in terms of volume on Bursa Malaysia. Notably, the figure was more than 70 times its 200-day average of 2.69 million shares.
On Wednesday, Eversendai’s share price surged 18.5 sen or 90.2% to close at 39 sen after the announcement on new contract wins. The stock has surged over 106% and 200% year to date and over the past 12 months.
No institutional analysts cover the stock.
The steel structure fabrication company secured four new contracts in Saudi Arabia, the United Arab Emirates and India. The contract value of RM5.4 billion well exceeded its current market value of RM257.7 million.
The company’s outstanding order book is now at a record high of RM6.6 billion.
For the financial year ended Dec 31, 2023 (FY2023), Eversendai booked RM26.62 million in net profit against RM361.52 million in net loss a year earlier as revenue jumped 60.61% to RM1.45 billion from RM905.31 million.