(Updated)

Opcom volume, price spike on TM contract supplementary agreement 

Opcom volume, price spike on TM contract supplementary agreement 
-A +A

KUALA LUMPUR (Aug 13): Opcom Holdings Bhd’s share trade volume spiked about 10-fold to around 21 million units in Bursa Malaysia morning trade today as its share price rose after the group announced yesterday its subsidiary Opcom Cables Sdn Bhd had negotiated and accepted an RM8.41 million project based on a supplementary agreement under an existing contract with Telekom Malaysia Bhd (TM) for the manufacture and supply of optical fibre cables to TM.

At 10:01am today, Opcom Holdings saw 20.92 million shares changing hands compared to 2.16 million yesterday while the stock price surged four sen or 7.69% to 56 sen.

Opcom Holdings shares were traded so far today at between 53.5 sen and 59.5 sen. At its current price of 56 sen, the company has a market value of about RM99.33 million based on its 177.37 million issued shares.

Yesterday, Opcom Holdings said the supplementary agreement starts from Monday (Aug 16, 2021) until May 20, 2022.

"The award is expected to contribute positively towards Opcom Group's earnings and net assets for the period of the award,” Opcom Holdings said.

Year to date, Opcom Holdings' share price had closed at its lowest point at 35 sen on Jan 11, 2021 before ending at its highest level at 80 sen on Feb 15, 2021.

The company's financials have improved. According to Opcom Holdings’ Bursa filing on May 27, 2021, the group recorded a net profit of RM2.59 million in financial year ended March 31, 2021 against a net loss of RM7.9 million a year earlier.

Revenue rose to RM66.99 million from RM44.45 million, the company said.

Chong Jin Hun