Update Seremban Engineering unaware of reason for share price rally

by **Cals** Tue 27 Oct 2015, 23:29

Update

[size=28]Seremban Engineering unaware of reason for share price rally

By Gho Chee Yuan / theedgemarkets.com | October 27, 2015 : 10:03 PM MYT

KUALA LUMPUR (Oct 27): Seremban Engineering Bhd (SEB) ([You must be registered and logged in to see this image.] Valuation: 0.90, Fundamental: 0.15), whose share price surged 30 sen or 65.22% to close at its one year high of 76 sen today, said it is unaware of the reason behind the unusual market activity (UMA).

In a filing with Bursa ([You must be registered and logged in to see this image.] Valuation: 1.70, Fundamental: 2.30) Malaysia today, SEB (fundamental: 0.15; valuation: 0.9) said the board of directors are not aware if any corporate development, business negotiation rumour or report, or any other possible explanation that could account for the sharp rise in its volume.

The engineering firm received an UMA query from Bursa today afternoon. It was the second top gainer on the bourse today, with some 27.19 million shares changing hands between 48.5 sen and 76 sen.

At its close of 76 sen, the counter had a market capitalisation of RM60.56 million.

SEB is 65%-owned by another listed company, Success Transformer Corp Bhd ([You must be registered and logged in to see this image.] Valuation: 1.80, Fundamental: 1.00).

Last Saturday (Oct 24), a local daily, quoting Success Transformer general manager (finance) Wong Wai Hung, reported that SEB's Sabah ammonia urea or Samur project's cost overrun issue is about to be diluted by next year.

Wong was quoted as saying that since Success Transformer (fundamental: 1.0; valuation: 1.8) bought into SEB in 2006, the latter had been contributing an average of 20% to 30% to the former’s total group profits until last year, when the cost overruns and higher finance costs negatively affected SEB's earnings.

(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.)
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