Penny stock Ingenieur Gudang again actively traded

by M. JAY SHEILA

PENNY stock Ingenieur Gudang Bhd, the most actively traded stock on the local stock exchange yesterday, continued to be actively traded today.

The counter was up 0.5 sen or 7.7% to 7.5 sen in mid-day trading. It was trading at 7 sen at 3.30pm today, with close to 96 million shares exchanging hands.

On May 27, the counter was at 6 sen, hitting a 52-week low.

In a recent exchange filing, the company updated the stock exchange that a suit brought about by Hanwa Co Ltd has been fixed for hearing on July 23.

The material litigation case started when Ingenieur Gudang had entered into a sale and purchase (S&P) agreement dated July 31, 2017 for the sale of 41% of total issued and paid-up capital of Hanwa Steel Centre (M) Sdn Bhd to Hanwa and had entered into a sale and purchase agreement dated June 14, 2019 for the sale of 10% of total issued and paid-up capital of Hanwa Steel Centre (M) Sdn Bhd to Hanwa.

Pursuant to the S&P agreements, Ingenieur Gudang was to pursue a tax appeal amounting to RM2.3 million to the Customs. The said appeal was rejected, and Hanwa claims there had been a breach of the S&P agreements.

On Sept 26, 2023, Ingenieur Gudang received a writ of summons and statement of claim both dated July 20, 2023 filed by Hanwa.

In an exchange filing on Apr 24, Ingenieur Gudang, formerly known as Dynaciate Group Bhd, announced a lower net profit of RM1.02 million against revenue of RM4 million for the first quarter ended Feb 29, 2024.

Revenue in the same period decreased 11% to RM7.44 million mainly due to slower progress recognition in the construction segment, mitigated by slight increase in rental income from property investment and other segment.

Its earnings per share (EPS) stood at 0.07 sen, compared to 0.39 sen in 1Q23.

Moving forward, Ingenieur Gudang said its construction division will continue to bid for new contracts to improve order book and revenue, as well as focusing on execution of the projects to ensure timely completion and delivery for current on-going projects.

“We expect our property investment division to achieve better tenancy levels to generate consistent rental income and better rental yield from our property portfolio,” it said.

ED Chan Swee Ying holds 14.12% of the company, followed by MMAG Holdings Bhd (10.18%) and Robust Potential Sdn Bhd (8.03%). It is worth RM 113.7 million on the market.