Kelington Group's share price registered a significant increase in trading on Bursa Malaysia today after the engineering solutions provider entered into a contract worth RM420 million.
As at 11.22am, the counter's share price continued to soar by around 18.75% to RM1.71, accumulating a market capitalization of RM1.06 billion.
Yesterday, Kelington's wholly -owned subsidiary, Kelington Technologies Sdn Bhd, obtained a contract from a manufacturing company in the Sama Jaya Free Industrial Zone in Kuching.
The contract agreement is aimed at carrying out construction work in respect of the company's Expansion Project in Sarawak which will begin in mid -September 2021.
The work is expected to be completed by December 31, 2022.
According to Kelington, the contract will have a positive impact on the group's income and net assets for the financial years 31 December 2022 and 2023.
Kenanga Research analyst Samuel Tan said Kelington had achieved new success that exceeded expectations and had broken a record of RM764 million.
In addition, the company's order book was also seen to increase to the highest level of all time amounting to RM822 million.
He added that Kelington remains considered a ‘hidden gem’ of the deck because of its healthy employment channel as well as a solid secular growth story.
