KUALA LUMPUR: Shares in Heitech Padu Bhd
were down nearly 7% at its lowest on Monday as trading resumed following the announcement it had won the bid for the immigration department's RM892.2mil National Integrated Immigration System (NIISe) project.
The trading stock of the IT services management firm was suspended on Friday in light of the material announcement. It opened higher at RM4.40 a share, a 1.38% gain over last Thursday's closing price of RM4.34, but succumbed to profit-taking pressure shortly to hit an intra-morning low of RM4.04.
As at 10.03am, the share was trading 20 sen or 4.61% lower at RM4.14 after 3.99 million shares changed hands.
HeiTech Padu's stock had risen nearly 90% in the one-month period leading up to its trading suspension on Friday, after it was reported that it was a frontrunner to secure the NIIse project.
Compared to its share price of 88 sen at the start of the year, the share is currently trading at nearly five times the value.
In last Friday's filing with Bursa Malaysia, HeiTech Padu said the project will run for a period of 60 months from Oct 18, 2024, to Oct 17, 2029.
The company has to submit a performance bond of RM8.92mil to the government, which will be valid from the effective date of the contract until 12 months after the contract expires.
HeiTech Padu expects the project to contribute positively to its earnings and net assets per share for the financial year ended Dec 31, 2024, and until the completion of the contract.
Previously, the company reported a net profit of RM581,000 in the first half of its financial year ended June 30, 2024 (1HFY24), as compared to a net loss of RM7.8mil in 1HFY23 due to better margins.
Revenue during the period, however, dipped to RM124.9mil from RM127.5mil in the same period in 2023.
