SAM Engineering hits fresh high at RM3.60

by **hlk** Tue 17 Apr 2012, 13:49

KUALA LUMPUR: Share price of SAM Engineering & Equipment (M) Bhd rallied to a fresh record high of RM3.60 at midday on Tuesday since it resumed trading last Friday.

At noon, it was up 41 sen to RM3.60. Turnover was 66,300 shares transacted.

The FBM KLCI was up just 0.69 of a point to 1,598.20. Turnover was 1.20 billion shares valued at RM669.22mil. There were 283 gainers, 278 losers and 322 stocks unchanged.

At RM3.60, this was RM1.04 or 40.6% above its net assets per share of RM2.56 in its third quarter ended Dec 31, 2011. It posted net profit of RM1.71 million in the third quarter ended Dec 31 on the back of RM108.61mil in revenue. It had cash and cash equivalents of RM17.01mil.

Last Thursday, Bursa Malaysia Securities had granted SAM Malaysia six months from the date of upliftment to comply with the public shareholding spread requirement.

The company had completed its restricted offer for sale and placement of 4.0 million shares, which saw the public shareholding spread increase to 10.62% as at Feb 23.

It said its major shareholder Singapore Aerospace Manufacturing Pte. Ltd was taking steps to reduce its shareholding via a share placement to potential private investors and/or institutional investors.

Plans were also to sell SAM Malaysia shares via the open market in the event open market trading and pricing of SAM Malaysia shares was conducive.

SAM Engineering had then said it would undertake an exercise to meet the shareholding spread and generate generate awareness of the company's business and growth prospects.

In the notes to the accounts for the quarter ended Dec 31, 2011, the company said that despite expecting the remaining quarters to be challenging in view of the ongoing uncertainty in the global economic conditions, the board expected both segments to have strong orders from the hard disk drive (HDD) markets.

However, it said the equipment manufacturing segment would strive for its HDD test equipment whereas the Precision Engineering segment will benefit from the surge in HDD demand due to the current shortage in HDD supply.