KUALA LUMPUR (May 28): Shares of UEM Edgenta Bhd (KL:EDGENTA) plunged as much as 13% on Wednesday, and wiped out all of the gains so far this year after the facility management firm slipped into a quarterly loss.
UEM Edgenta fell as much as 11 sen to 75 sen before easing off lows. At 9.30am, the stock was trading at 76 sen after more than three million shares exchanged hands. At the last price, UEM Edgenta had a market capitalisation of about RM632 million.
No institutional analysts cover UEM Edgenta.
Shares of UEM Edgenta have been volatile but surged more than 20% this month alone before peaking at 94 sen on May 16. However, investors who bought UEM Edgenta’s shares at the end of last year are now nursing a 2% loss.
Sovereign wealth fund Khazanah Nasional Bhd’s UEM Group Bhd owns a 69% in UEM Edgenta, which provides management and maintenance services for hospitals, office buildings, and infrastructure such as roads and ports.
Net loss for the three months ended March 31, 2025 (1QFY2025) was RM17.95 million, or 2.16 sen per share, as revenue fell due to completion of several one-off contracts and cyclical factors as well as higher operational costs, according to an exchange filing on Tuesday.
The last time UEM Edgenta fell into the red was in 3QFY2020, due to pandemic-related disruptions in its infrastructure business and inventory impairments.
On its part, the company said it is optimistic of better days ahead, partly backed by contract wins in international markets.
“Our recent international wins in key markets like Saudi Arabia, the United Arab Emirates and Singapore are already providing a foundation for a turnaround,” UEM Edgenta managing director and chief executive officer Syahrunizam Samsudin said in a statement on Tuesday.