KUALA LUMPUR (June 14): Shares in Cabnet Holdings Bhd (KL:CABNET) soared to their highest in six years on Friday, after the building management solutions provider secured a RM46 million subcontract for a project in Johor Bahru.
Cabnet climbed over 59.65% or 17 sen to 46.5 sen, its highest since Feb 20, 2018. The stock was trading at 42 sen at 11.06am, valuing the company at RM75.97 million on Bursa Malaysia. Trading volume totalled 34.12 million shares, the highest since June 2021.
Currently, the stock is not covered by any analysts.
Cabnet on Thursday said that its wholly owned unit Cabnet M&E Sdn Bhd had been appointed by Jayaplus Development Sdn Bhd as the subcontractor for electrical works for a project in Johor Bahru.
The company will supply, install, test, commission, and maintain 11-kilovolt high-voltage and low-voltage electrical works.
The group expects the contract to contribute positively to its earnings for the financial year ending Feb 28, 2025 (FY2025) to FY2028, it said in a bourse filing.
Cabnet mainly provides building management solutions, comprising structured cabling works and extra-low voltage systems for buildings and other facilities. The ACE-Market listed company also provides information technology services.
As at end-February, the group’s order book stood at RM106 million, according to its latest financial statement.
Net profit stood at RM471,000 for the three months ended Feb 29, 2024, on revenue of RM61.54 million, contributed by construction contracts and sales of goods and services.
Cabinet has changed its financial year end from Dec 31 to Feb 28.
The company’s largest shareholder is Kuopacific Strategic Sdn Bhd with a 31% stake, followed by Dragonbay Global Pte Ltd with 20%, and Cabnet executive director Tay Hong Sing with 10.26%.