KUALA LUMPUR (June 6): Shares in WCT Holdings Bhd (KL:WCT) climbed to their highest in more than four years on Thursday. 

The stock surged 40% or 25 sen to 87.5 sen, the highest level since November 2019. The quantum leap in the share price is one of the biggest single-day gains.

The price rally added RM255.1 million to WCT’s market capitalisation, which now stands at RM1.14 billion.

WCT closed the day at 77.5 sen for a gain of 15 sen or 24%, with more than 231.22 million shares changing hands, making it the day’s most active stock on Bursa Malaysia.

The stock has risen 55% since the beginning of this year and surged 84.52% in the past one year.

WCT currently has four “buy” calls, four “hold” recommendations, while only one research house — TA Securities — has a “sell” rating.

Meanwhile, the stock had surpassed its 12-month target price of 61 sen on Monday, Bloomberg’s data showed.

Property tycoon Tan Sri Desmond Lim Siew Choon’s private vehicle Dominion Nexus Sdn Bhd holds the largest stake in the property company of 18.15%, followed by Lim himself with a 7.42% stake, and Amanah Saham Nasional Bhd with 5.82%.

It was not known at press time what could have lifted WCT’s share price, which started climbing from 52.5 sen about two weeks ago on May 24.

Meanwhile, property developer Malton Bhd (KL:MALTON), in which Lim is the chairman and controlling shareholder, also saw its shares surge to a two-year high on Thursday.

Malton climbed 30.49% — its largest one-day gain over three years — to its upper limit of 55 sen. The counter closed at 50.5 sen, still up 23.17%. It saw 50.11 million shares exchange hands to finish among the top-20 active stocks on the exchange.

At 50.5 sen, Malton is valued at RM263.46 million. The stock has gained 32.89% year-to-date and 20.24% in the past one year.

Besides Malton, Lim is also the chairman and second largest shareholder of Pavilion Real Estate Investment Trust (KL:PAVREIT).

Last Wednesday, WCT announced that it had returned to the black in its first quarter of 2024, after posting two consecutive quarters of losses, thanks to the improved results from its construction, property and property investment segments.

Net profit for the three months ended March 31, 2024 (1QFY2024) was RM16.14 million, versus a net loss of RM7.69 million a year earlier. Revenue for the quarter rose 15.51% year-on-year to RM467.39 million, from RM404.65 million. No dividend was declared. The last time it paid a dividend of half a sen per share was in FY2022.

For the full financial year ended Dec 31, 2023 (FY2023), WCT incurred a net loss of RM254.15 million, in contrast to a net profit of RM128.68 million in FY2022, as revenue dropped 17.94% to RM1.73 billion from RM2.1 billion.

Prior to 1QFY2024 result, the group had entered into a supplemental agreement with Malaysia Airports Holdings Bhd (KL:AIRPORT), or MAHB, and the airport’s unit Malaysia Airports (Sepang) Sdn Bhd — which would result in an extension of its concession by 22 years and also paring down its stake in the concessionaire Segi Astana Sdn Bhd from 70% to 53%.

Hong Leong Investment Bank (HLIB), in a recent note, said it expects the agreement to result in a net gain after tax from re-measurement at around RM184 million for WCT.