Update Seremban Engineering issued UMA

by **Cals** Tue 27 Oct 2015, 17:25

Update

[size=28]Seremban Engineering issued UMA

By Tan Siew Mung / theedgemarkets.com | October 27, 2015 : 5:09 PM MYT

KUALA LUMPUR (Oct 27): Seremban Engineering Bhd ([You must be registered and logged in to see this image.] Valuation: 0.90, Fundamental: 0.15), which saw its share price surge more than 65% to a 52-week high today, has been slapped with an unusual market activity (UMA) query byBursa ( Valuation: 1.70, Fundamental: 2.30) Malaysia, to explain the reason behind the sharp rise in price and volume.

In the UMA query today, Bursa asked SEB (fundamental: 0.15; valuation: 0.90) if there was 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 was the top gainer on the bourse today, rising as much as 30 sen or 65% to a 52-week high of 76 sen, giving it a market capitalisation of RM36.7 million.

The counter saw 25.59 million shares traded.

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) (Fundamental: 1.00; Valuation: 1.80).

Last Saturday (Oct 24), local media reported, quoting Success Transformer general manager (finance) Wong Wai Hung, 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 bought over SEB back in 2006, the latter had been contributing an average of 20% to 30% to Success Transformer'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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