Mitrajaya surges to over eight-month high amid active trade after RM174m contract win

• The company’s construction arm announced on Wednesday (May 15) that it landed a contract worth RM174.3 million to build a hospital in Shah Alam, Selangor, through its wholly owned subsidiary Mitrajaya Pembinaan Sdn Bhd.

KUALA LUMPUR (May 16): Shares of Mitrajaya Holdings Bhd (KL:MITRA) rose to their highest in more than eight months, after the builder and property developer announced that it has secured a contract worth RM174.3 million.

Mitrajaya rose as much as 13% or 3.5 sen to 30.5 sen in Thursday morning’s trading session, its highest since Aug 29, 2023. The stock was trading at 29.5 sen at 9.30am, after more than 3.7 million shares changed hands. Mitrajaya was also more active than usual, with trading volume at over 16 times its four-week average volume.

Only TA Securities covered the stock with a “hold” call and a target price of 53 sen, Bloomberg data showed.

At its current price, the group is valued at RM233.61 million.

The company’s construction arm announced on Wednesday (May 15) that it landed a contract worth RM174.3 million to build a hospital in Shah Alam, Selangor, through its wholly owned subsidiary Mitrajaya Pembinaan Sdn Bhd.

The contract, which was awarded by Avisena Healthcare Sdn Bhd, is slated for completion by May 2027.

Mitrajaya has been in the red over the past three consecutive quarters.

For the fourth quarter ended Dec 31, 2023 (FY2023), the group logged a net loss of RM2.46 million against a net profit of RM2.27 million a year earlier, as it saw lower finance income, while revenue dropped 18.89% year-on-year to RM46.18 million.

Nevertheless, it logged a net profit of RM14.1 million in FY2023, doubling from RM7.4 million a year earlier, while revenue rose to RM294.78 million from RM259.58 million. This was mainly contributed by one-off disposal gains from a parcel of land in Pulau Melaka, for a revenue of RM63 million and a profit before tax of RM32.52 million.

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