Hot Stock: Salcon up 4.8% after bagging a RM71.3 mil Sri Lankan job

Salcon Bhd’s share price rose 4.8% to 32.5 sen today with about 6.33 million shares traded following the announcement yesterday that its wholly-owned subsidiary Salcon Engineering Bhd has won a contract worth RM71.27 million in Sri Lanka.
The volume was more than three times its 30-day average volume of 1.93 million. Despite the increase, Salcon has seen a decline of about 20.0% in its share price, as compared to a year ago.
Based on the filing with Bursa Malaysia yesterday, the group will be involved in the design and building of Ambatale Storm Water Pumping Station. The letter of acceptance dated July 12 from the Ministry of Metropolis and Western Development of Sri Lanka, was received yesterday, the filing said.
It added that the project is expected to contribute positively towards the earnings and net assets of Salcon for the financial year ending Dec 31, 2018, (FY18), FY19 and FY20.

The group’s last financial year ended Dec 31, 2017 (FY17) was in the red, while net loss in the first quarter of its financial year ended March 31, 2018 (1QFY18) widened to RM7.67 million, from RM3.80 million in 1QFY17.