KUALA LUMPUR, July 5 ― Shares of UEM Edgenta Bhd rose 2.8 per cent in the morning trading after a news report emerged of its indirect subsidiary, UEMS Solutions Pte Ltd, bagging contracts worth up to RM540.06 million for the provision of hospital support services in Singapore.

At 10.20am, UEM Edgenta's shares went up eight sen to RM2.93, with 415,300 shares traded.

Amanah Investment Bank Bhd Research (MIDF Research) in a note today, said it had maintained a “buy” call on the company with an unchanged target price of RM3.28 per share following the news report.

“We remain optimistic on Edgenta’s growth prospect going forward as it has proven time and again of its capability in delivering facilities support services, especially in the healthcare segment where it continues to be the preferred support service provider in the region,” it said.

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The research house was also positive that the company continued to leverage on its robust network of technology infrastructure and proven track record to provide expert facilities management services in both the highway maintenance, as well as the property management segments.

“While we are positive on the new contract win, we are making no changes to our 2019-2020 financial years' earnings estimates at this juncture, as we await for further clarity on the exact contract value and duration of the contract in the upcoming analyst briefing,” it added.

MIDF Research forecast UEM Edgenta’s normalised earnings to hit RM162.20 million for the financial year ended Dec 31, 2019 (FY19) and RM172.3 million for FY20. ― Bernama

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