Highlight Xin Hwa bags RM1.8m logistic contracts from MMHE

by **Cals** Tue 04 Aug 2015, 19:25

Highlight
Xin Hwa bags RM1.8m logistic contracts from MMHE

KUALA LUMPUR (Aug 4): Newly listed Xin Hwa Holdings Bhd has clinched two logistic contracts with a collective value of RM1.8 million from Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE).
In a filing with Bursa Malaysia today, the integrated logistic services provider said the two contracts were secured through its unit Xin Hwa Trading & Transport Sdn Bhd yesterday.
The first contract has an estimated value of RM1.2 million and Xin Hwa (fundamental: N/A; valuation: N/A) said it is for the transportation of spent copper slag from MMHE's yard to the site of the latter’s customers.
The second contract, awarded by MMHE subsidiary Techno Indah Sdn Bhd (TEIN), is valued at RM600,000.
“The contract is for the transportation of sludge from Kerteh, Terengganu, and Sg Udang, Melaka, to TEIN," it added.
Xin Hwa said both contracts are for 12 months. The first contract commenced yesterday while the second contract commenced on Aug 1.
The group expects the contracts to contribute positively towards its earnings and net assets per share for the financial year ending Dec 31, 2015 (FY15) and financial year 2016 (FY16).
Xin Hwa was listed on Main Market of Bursa Malaysia on June 30 this year. The stock has since climbed 57 sen or 82.9% to RM1.28 as at 3.59pm today, compared with its initial public offering price of 70 sen apiece.
With the current price, it has a market capitalisation of RM226.8 million.
(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)