Kumpulan Powernet shares rally for 2nd consecutive day

The increasing share price of Kumpulan Powernet, Serba Dinamik and SCIB is due to potential growth of the companies, says Mohd Abdul Karim

By NUR HANANI AZMAN / Pic By ARIF KARTONO

THE rally in Kumpulan Powernet Bhd’s share price continued, with stocks rising to a fresh high of RM2.77 or 25 sen, or 9.9% higher, following the hydropower project contract award worth US$15.88 million (RM65.88 million) in Laos.

The counter has gained over 540% in the past 12 months since Serba Dinamik Holdings Bhd group MD and CEO Datuk Dr Mohd Abdul Karim Abdullah (picture) became a substantial shareholder late last year.

“It’s mainly to support Serba Dinamik’s growth as a whole. I believe the increasing share price of Kumpulan Powernet, Serba Dinamik and Sarawak Consolidated Industries Bhd (SCIB) is due to potential growth of the companies.

“Each company will make the necessary announcements on its detailed plans for growth, pending approval from the necessary parties and authorities,” Mohd Abdul Karim told The Malaysian Reserve yesterday.

Kumpulan Powernet has been awarded a contract for the design, supply, construction, commissioning and completion of an 8MW small hydropower plant in Vientiane Province of the Lao People’s Democratic Republic.

The contract was awarded by Zhenghong Building Road & Bridge Construction Co Ltd and the works are expected to be completed within 18 months from the commencement date.

The scope of work includes the construction, supervision, testing, commission, reliability test, remedy of defect during the defect liability period and provision of all equipment, both permanent works and temporary works in connection with the project.

The company shall also be responsible to undertake the corresponding mobilisation and preliminary cost in relation to the works, the group said in a Bursa filing on Tuesday.

In October 2019, Mohd Abdul Karim made a takeover offer to buy the remaining shares in Kumpulan Powernet at RM1 each.

Mercury Securities Sdn Bhd said the offer is also reasonable as it provides an opportunity for shareholders to realise their investment in Kumpulan Powernet in the immediate term.

In August 2019, Mohd Abdul Karim acquired an additional 20.31% stake in SCIB for RM19.19 million via a direct business transaction. He now owns a total of 42.84% equity holdings in SCIB.

At 5pm yesterday, Serba Dinamik shares increased 2.97% to RM2.43, while SCIB shares increased 6.09% to RM3.31.