KUALA LUMPUR (April 26): The Employees Provident Fund (EPF) has emerged as the second largest shareholder of aero-engine components manufacturer Sam Engineering & Equipment (M) Bhd, after Singapore's sovereign wealth fund Temasek Holdings Pte Ltd.
The EPF bought one block of 45.09 million shares or a 6.661% stake on Tuesday at an undisclosed value, Sam Engineering showed in a bourse filing on Friday.
The acquisition price was not disclosed, but according to Bloomberg data, there were 70 million SAM Engineering shares crossed off-market at RM4.10 apiece on Tuesday.
SAM Engineering closed at RM4.63 on Tuesday, making the price where the shares crossed off-market a 11.45% discount from the closing price.
On the same day, Temasek, through its wholly owned unit Singapore Aerospace Manufacturing Pte Ltd, offloaded 70 million shares, or a 10.34% stake. Despite the disposal, the fund remains the largest shareholder of SAM Engineering with a 55.24% stake, from 65.58% previously.
Sam Engineering’s net profit rose 18.41% year-on-year to RM82.48 million for the nine months ended Dec 31, 2023, contributed by higher sales and government grants within the aerospace segment, as well as higher-margin products and favourable exchange rates within the equipment segment.
Looking ahead, Sam Engineering expects a steady recovery in the aerospace sector, despite potential constraints due to supply chain capacity and uncertainties arising from tension in the Middle East.
Regarding the semiconductor industry, the company noted that although sales had rebounded, fab capacity utilisation remained low. “It may take time for fab utilisation to fully recover, and for our customers to consume excess equipment inventories, before demand increases in tandem with the global forecast,” it added.
At Friday’s closing bell, shares in Sam Engineering were one sen or 0.2% lower at RM4.88, giving the company a market value of RM3.3 billion. Year to date, the stock has risen over 23%.