KUALA LUMPUR (Sept 2): Shares of Pansar Bhd (KL:PANSAR) rose on Monday to their highest in nearly three months, after the building materials company secured a RM804.7 million construction contract.
Pansar rose as much as 6.1% or 3.5 sen to 60.5 sen, its highest since June 12, 2024. The stock was ended the day at 58 sen, giving the Sarawak-based company a market capitalisation of RM296 million on Bursa Malaysia.
The stock was also more active than usual with trading volume totalling 4.3 million shares so far, more than 11 times higher than the 200-day moving average.
No institutional analyst covers the stock.
Last Friday, Pansar announced that it had clinched an RM804.7 million contract for the Kuching Urban Transportation System (KUTS) Blue-Line Package 2 in Sarawak.
The contract entails construction of the infrastructure and associated works for the KUTS Blue Line that covers the stretch from Stutong to Hikmah Exchange. The scope includes architectural design, mechanical and electrical works, as well as roadworks and other related works.
So far this year, the stock has declined 15% as the company grappled with a decline in profits for the past two quarters.
Apart from building materials, Pansar also distributes marine engines, industrial products and wood-engineering equipment. The company is also involved in air conditioning, ventilation and fire protection systems as well electrical and mechanical engineering.
Pan Sarawak Holdings Sdn Bhd, the vehicle of chairman Datuk James Tai Cheong and his family, is Pansar’s largest shareholder with nearly 60% stake. Pansar is also a substantial shareholder of Reservoir Link Energy Bhd (KL:RL) chaired by Tai’s brother.
Financially, Pansar reported a slight year-on-year decline in net profit to RM6.88 million for the first quarter ended June 30, 2024 (1QFY2025), while revenue fell to RM244.39 million due to reduced income from the construction materials and agro engineering businesses.